The Low Pay Commission has carried out a review of the system of board and lodging allowances, commonly used by families when calculating the wages of an au pair.
Under the National Minimum Wage Act 2000, if an employer provides their employee with food (board) and accommodation (lodgings), they are allowed deduct a certain amount from the wage paid.
This is typically used for employees such as au-pairs and other household staff and usually, this arrangement works in favour of both parties.
In the case of an au pair, it is generally more affordable to live in with a family, than rent a room privately, particularly in Dublin where there is a massive rental crisis.
However, the rates paid to au pairs were called into question after an au pair who was paid just €100 per week plus board and lodgings for a 30-60 hour week took a landmark case against the family who employed her.
The Workplace Relations Commission (WRC) found that the family had broken employment law by not paying the au pair the minimum wage and awarded her over €9,000 in compensation, according to RTE.
The current maximum rates deductible are €54.13 for full board and lodgings or €54.13 for full board and lodgings per week, or €7.73 per day, €32.14 for full board only per week, or €4.60 per day, €21.85 for lodgings only per week, or €3.14 per day.
The rates for board and lodgings have not been adjusted since the Minimum Wage Act of 2000 and inspections carried out by the WRC found several issues with the existing scheme.
One issue they discovered that some part-time au pairs do not work enough hours to avail of full board yet their employers are deducting the full board allowance.
Some au pairs said they would prefer to receive the minimum wage and provide their own food, rather than have it deducted from their wages.
During their consultation process, the Low Pay Commission received submissions from individual au pairs and employers of au pairs, au pair agencies, unions, law firms and political parties.
They have recommended that the rates deductible for lodgings should not be changed at this time but may be reviewed annually in conjunction with a review of the minimum wage.
They also recommend that the method of calculation of board deductions should be changed from a weekly/daily rate to an hourly rate.
They called this a “practical proposal” given that many of the workers affected work part-time and cannot avail of three full meals per day.
They have recommended that allowances for board should now be set at €0.82 per hour worked and allowances for lodgings to remain at €21.85 per week or €3.14 per day for now. These allowances may be reviewed in the future.
What do you think of the recommended change in board allowances mums? Will it affect your decision to hire an au pair? Let us know.
