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The principal function of the Low Pay Commission is, on an annual basis, to examine and make recommendations to the Minister on the appropriate level of the national minimum wage and related matters.

Under the National Minimum Wage (Low Pay Commission) Act, 2015, the Low Pay Commission shall make such recommendations to the Minister that are designed to set a minimum wage that is fair and sustainable, and when appropriate, is adjusted incrementally, and that, over time, is progressively increased to assist as many low-paid workers as is reasonably practicable without creating significant adverse consequences for employment or competitiveness.

The National Minimum Wage (Low Pay Commission) Act, 2015, also allows for the Minister to request the Commission to examine and report its views on other matters, related generally to the functions of the Act. In this context the Commission has been requested to examine current practices relating to employee tips and the potential impact of legislation on this area.

In order to get a better understanding of how employee tips are currently shared and distributed the Commission is currently conducting a targeted consultation process with stakeholders, particularly employee and employer representative bodies.