National Social Monitor : Policies for the Next Generation - Income Distribution

This section of our National Social Monitor: The Future Starts Now: Policies for the Next Generation looks briefly at the income distribution issues that impact young people. 

Social Welfare

Income inequality continues to disproportionately affect young people aged 15-29. Despite facing the same living costs as older adults, young people under 25 experience lower levels of support through Ireland’s social welfare system. Reduced Jobseeker’s rates mean that young people are expected to live on significantly less, even though food, transport and other costs do not vary by age. This creates a structural gap at the age where young people are attempting to transition into independent living, education or employment.

Lower social welfare payments increase financial insecurity and limit access to housing, healthcare, and professional training; reinforcing wider social or economic inequalities for young people. Table 1 shows that although all Jobseeker’s payments increased by €10 in Budget 2026, young people under 25 continue to receive a substantially lower weekly rate than those aged 25 and above. This demonstrates that recent increases in social welfare funding fails to address the underlying inequality in age-based welfare rates. Access to the full rate is conditional for many aged under 25, it creates additional barriers for young people who are unemployed but also not in education or training. Also, although there is a difference in the jobseeker’s rate for under-25s, nonetheless those aged under 25 in employment continue to pay the same rate of PRSI as their older counterparts. 

Table 1: Jobseeker’s Allowance weekly rates by age group

Source: Dept. of Social Protection, SW19

Although Budget 2026 increased social welfare payments for all age groups, there are no current government commitments to equalise these rates. The reduced rate of social welfare payments for under 25s is inadequate to meet basic needs and is insufficient to support young people through a transitionary period of life. The rate should be increased to the same rate as adults aged 25 and over to better reflect living costs.

Minimum Wage

Alongside inequalities in social welfare, Ireland operates an age-based minimum wage system, younger workers can be legally paid less than older colleagues for the exact same work. Workers under the age of 18 receive only 70 per cent of the adult minimum wage, rising to 80 per cent at age 18 and 90 per cent at age 19 (DETE, 2025). As a result, those aged under 18 receive over €4 less per hour than those aged 20 and above amounting to more than €160 less over a 38 hour work week.

Chart 1 shows that in 2024, workers aged 15-24 had the lowest median weekly earnings of all age groups followed by the 25-29 age group. The 15-24 age group’s median earnings were just over half of those of the 25-29 age group. This indicates that young people make up the majority of low paid workers. 

Chart 1: Median weekly earnings by age group

Source: CSO, Earnings Analysis, 2024

Even at the full adult rate, which was increased to €14.15 in Budget 2026, the National Minimum Wage remains below the Living Wage of €15.40, which is calculated through MESL (Minimum Essential Standard of Living) research. The Living Wage is minimum sum required to provide the minimum acceptable standard of living. Our current national minimum wage would suggest that workers are forced to do without certain essentials to make ends meet. For young people receiving sub-minimum wages the gap between earnings and living costs is even wider.

Recent ESRI research finds that increases in the minimum wage in Ireland have not led to job losses among low-paid workers, challenging a key concern in minimum wage policy debates (Redmond, Kelly, & Creaton, 2026). This evidence strengthens the case for improving pay standards. However, beyond pay, policy must also address issues of job quality, security, and worker protections in an increasingly fragmented labour market.

Policy Priorities

• Equalise Jobseeker’s allowance so that those under 25 receive the same rate as those aged 25 and over.

• Phase out sub-minimum wage rates for those aged under 20 to ensure equal pay for equal work.

• Align the national minimum wage with the Living Wage to ensure full time work provides a basic standard of living.