The cost of living in Ireland has surged over recent years, leaving many workers struggling to make ends meet. While the government has raised the national minimum wage, many argue that it still falls short of what’s needed to cover basic expenses. With rising housing costs, energy bills, and food prices, the question remains: Is Ireland’s minimum wage enough to survive?

1. The Minimum Wage vs. The Living Wage

As of January 1, 2025, Ireland’s national minimum wage stands at €13.50 per hour. However, economic experts argue that this is still too low to meet the real cost of living.

The Living Wage Technical Group, which calculates how much a person actually needs to afford a basic but decent standard of living, has set the living wage at €14.75 per hour for 2024/25.

This means that minimum wage workers are earning €1.25 less per hour than what is needed to cover essential living costs. For a full-time worker, this translates to a shortfall of around €200 per month—a significant amount when dealing with high rents, bills, and daily expenses.

2. Why Is the Cost of Living So High in Ireland?

Several factors have contributed to the rising cost of living, making it increasingly difficult for minimum wage earners to afford basic necessities.

2.1 Housing Crisis: Rent Costs More Than Half of Wages

• Ireland has some of the highest rental prices in Europe, especially in cities like Dublin, Cork, and Galway.
• The average rent for a one-bedroom apartment in Dublin is now over €2,000 per month—far beyond what a minimum wage worker can afford.
• Even outside Dublin, rents remain high, with Cork (€1,600) and Galway (€1,500) also becoming unaffordable for many workers.

2.2 Rising Energy & Utility Bills

• Electricity and gas bills have risen by over 30% in the past two years due to global energy crises and supply chain disruptions.
• Many minimum wage workers struggle to keep up with heating costs, particularly during the winter months.

2.3 Food & Essential Goods Price Increases

• Grocery prices have increased by 9% in the last year, making even basic food items more expensive.
• Milk, bread, and vegetables—staples of most households—have all gone up in price, forcing many workers to cut back on essentials.

2.4 Transportation Costs Add More Pressure

• Public transport fares have gone up, while fuel prices remain high, making it more expensive to get to work.
• Many minimum wage workers rely on buses, trains, and Luas services, but price hikes are making commuting a significant financial burden.

3. Is the Government Doing Enough?

The Irish government has acknowledged the gap between the minimum wage and the real cost of living. In response, it has announced plans to introduce a living wage system by 2026, where wages will be set at 60% of the median wage.

3.1 The Plan for a Living Wage

• By 2026, the minimum wage is expected to increase to match the living wage, providing workers with a more sustainable income.
• However, critics argue that this change needs to happen sooner, as many workers are struggling right now.

3.2 Government Support Schemes

• The government has introduced energy credits and rent subsidies to help with cost-of-living pressures, but many workers still fall through the cracks.
• Renters in Rent Pressure Zones (RPZs) are supposed to be protected from excessive rent hikes, but enforcement is weak, leaving many tenants vulnerable to illegal increases.

4. What Needs to Change?

To ensure that all workers in Ireland can afford to live with dignity, several key changes need to happen:

✔ Raise the minimum wage to match the living wage immediately, rather than waiting until 2026.
✔ Stronger rent controls to prevent landlords from increasing prices beyond affordable levels.
✔ More investment in social and affordable housing to reduce rental demand and bring prices down.
✔ Better regulation of energy prices to prevent excessive utility bill increases.
✔ Expansion of free public transport options to reduce commuting costs for low-income workers.

5. Final Thoughts: Is It Possible to Live on the Minimum Wage?

For many workers in Ireland, the answer is no. While the government has taken some steps to ease the cost-of-living crisis, the gap between wages and expenses remains too wide.

The reality is that Ireland is an expensive country to live in, and unless wages rise to reflect real costs, thousands of workers will continue to struggle to pay rent, afford food, and cover basic bills.

What Can You Do?

• Stay informed about your rights as a worker.
• Push for stronger worker protections by supporting campaigns for fair wages.
• Use available support schemes such as rent subsidies and energy credits if eligible.

Ireland has one of the highest living costs in Europe, and until wages match the true price of daily life, minimum wage workers will remain in financial hardship.

The time for action is now.

Stay informed with itson.ie.