Increase in National Minimum Wage - January 2023

The National Minimum Wage is set to increase in January 2023.

The National Minimum Wage applies to most employees. It is the minimum hourly pay rate that must be paid. It applies to full-time, part-time, temporary, casual employees and seasonal workers. What can be included as pay for the National Minimum Wage (reckonable components) *

The following can be included to make up the national minimum wage

-normal basic pay

-shift allowances or other similar payments

-any fee, bonus or commission

-Zero Hours payments

Board & Lodgings

-Service charge given through the payroll

What can’t be included for the National Minimum Wage (non reckonable components) *

The following payments cannot be included to make up the national minimum wage rate:

-any payment of expenses incurred by the employee in carrying out his/her employment

-Premiums including overtime, public holiday, Saturday, Sunday, unsocial hours or call out

-Allowances for special duties including a post of responsibility, on call or standby

-Tips or gratuities paid into a central fund and paid through the payroll

-any payment to the employee not made for their role as an employee

-any payment in kind or benefit in kind.

-any sum payable to an employee in lieu of notice of termination of employment

*these are not full lists

Original Article: https://www.workplacerelations.ie/en/what_you_should_know/hours-and-wages/national%20minimum%20wage/

Average Hourly Rate of Pay

The average hourly rate of pay must not be less than the national minimum wage hourly rate

The average hourly rate of pay is calculated by dividing the gross reckonable pay by the numbers of hours worked in pay reference period.

New Minimum Wage Rates for 2023

Aged 20 - and above €11.30

Aged 19 - €10.17

Aged 18 - €9.04

Aged under 18 - €7.91 More information can be found here: https://www.gov.ie/en/campaigns/6fc06b-low-pay-commission/?referrer=http://www.gov.ie/minimumwage/