The National Minimum Wage Increase

On the Up

As of February 1st, 2020, there will be an increase in the National Minimum Wage for employees over 20 years of age. The minimum wage for these workers has increased from €9.80 to €10.10 with immediate effect. It is advisable that you notify all employees currently receiving minimum wage of this change before their next payslip to ensure that they know this change will be in effect immediately.

For all workers under the age of 20, there will also be an increase in line with the minimum wage guidelines. These new rates will be as follows:

  • Employees under the age of 18: €7.07 per hour.
  • Employees aged 18: €8.08 per hour.
  • Employees aged 19: €9.09 per hour.

Regina Doherty of the Department of Social Protection has said of the increase:

“Since 2016, a minimum wage employee working a 39-hour week has received a gross pay increase of €2,331. Since 2015, we have increased the minimum wage by 13.2% ahead of the rate of inflation.”

There is still a way to go before we are on par with the current living wage estimate of €12.30 per hour, but any increases are of course a step in the right direction for low income workers and their families with our ever increasing cost of living as we continue to see working people living under the poverty line. Chief Executive of Social Justice Ireland has stated that Ireland has one of the highest rates of low-paid employment in the OECD (The Organisation for Economic Co-Operation and Development.

It is also advised that in light of these increases, employers should take a look at their current rates for Sunday work as legislation states that employees should receive reasonable compensation for this work, whilst the amount is not specified it is suggested that a 25% premium may find its way into legislation and it may be wise to follow this template going forward.

Should you have any concerns or queries on any business or financial matters, please don’t hesitate to contact us here at EcovisDCA where we are always happy to help.

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DCA PARTNERSDECLAN DOLAN & EAMONN GARVEY