6 Jan 2021

Minimum wage increased from €10.10 to €10.20 per hour

The National Minimum Wage increased on 1 January 2021 from €10.10 to €10.20 per hour.

All employees in Ireland who currently earn €10.10, should see a 10 cent increase in their hourly salary.

Employers in Ireland must comply with the National Minimum Wage Act, with the exception of certain employment of people under the age of 18 or people employed pursuant to Employment Regulation Orders and registered employment agreements. Employers should be sure to raise salaries to meet the new minimum wage. Intra-Company Transfer Permit and Contract for Services Permit holders allow employers to count certain allowances, such as housing or health insurance, toward meeting the minimum salary threshold required for the visa category. Employers should adjust the base remuneration to meet the higher national minimum wage before adding the allowances.

Employers should identify employees whose salaries require adjustment and make the appropriate increases to meet the new statutory minimum wage. Employers should also consider this when hiring any new employees.

Back in Oct when it was first announced, Minister Heather Humphreys said that the move would benefit 122,000 low-paid workers.

She said; “I also want to ensure that the increase in the minimum wage does not result in employers having to pay a higher level of PRSI charge solely due to this increase,” she said.

“I will make regulations that will increase the employer PRSI threshold from €395 currently to €398 from 1 January 2021.”

The recommendation for a 10c rise in the minimum wage was made last month by the Low Pay Commission.

However, trade unions withdrew at a late stage from the government-established commission. This followed a disagreement between the Irish Congress of Trade Unions (ICTU) and other members over the proposed rate of increase. 

The move led to clashes in the Dáil between the Taoiseach and Mary Lou McDonald. The Sinn Féin leader accused the government of turning its back on workers.  

 Micheál Martin, on the other hand, accused Sinn Féin of trying to make political capital from the dispute. 

More information on Employment Rights and Conditions, Pay and Employment can be found here;

https://www.citizensinformation.ie/en/employment/employment_rights_and_conditions/pay_and_employment/pay_inc_min_wage.html

 

 

Need help? Contact us
Cookies, Privacy and Terms©JobAlert.ie  2024