Ireland’s minimum wage rates increased from 2024 onwards
Understanding Ireland’s Minimum Wage: Rates, Changes, and Your Rights Introduction: In Ireland, the amount of pay negotiated between employers and employees is a common practice. That being said, the National Minimum Wage Act of 2000 gave most workers the right to a minimum wage. As of January 1, 2023, the national minimum wage stands at €11.30 per hour, with variations for different age groups.
(Read our blog to discover which Famous Pakistani restaurant in Blackrock opens soon.)
Understanding Ireland’s Minimum Wage Rates:
Budget 2024 brought significant news for workers, as it announced an increase in the minimum wage, effective January 1, 2024. The minimum wage for individuals aged 20 and over will rise by €1.40, bringing it to €12.70 per hour. Because they immediately affect your earnings, these are significant changes that you should be aware of.
Different Rates for Certain Sectors:
Various sectors, such as security and cleaning, have specific minimum wage rates outlined in Employment agreements and orders (EROs) by Joint Labour Committees. Understanding these sector-specific rates is essential for employees working in these industries.
What Counts as Pay:
When determining the minimum wage, your gross wage is considered—the total pay before deductions like tax or pension contributions. This includes your basic pay, shift premiums, bonuses, commissions, and service charges through the payroll. Additionally, the minimum wage computation takes into account certain sums if your employer provides you with board or lodging.
Calculating Your Hourly Rate:
To find your hourly rate, divide your gross pay by the total number of hours you have worked. This calculation considers the pay reference period, as selected by your employer, and includes details of the working hours, including overtime, travel time, and approved training during normal working hours.
Exclusions from Pay Calculation:
When determining the minimum wage, some factors shouldn’t be taken into account. These include overtime premiums, call-out premiums, allowances for special duties, certain payments during leave, and various other non-employment-related payments.
Rates for Different Age Groups:
Since January 1, 2023, the minimum wage rates vary based on age. For those who are over 20, the hourly rate is €11.30. Those aged 19, 18, and under 18 have corresponding rates of €10.17 (90%), €9.04 (80%), and €7.91 (70%), respectively. The upcoming changes in 2024 will see an increase in these rates, emphasizing the importance of staying informed.
Employer’s Financial Difficulty and Exemptions:
In cases where an employer faces financial difficulty, the Labour Court may grant permission to exempt them from paying the minimum wage for a specific period. This requires the employer’s application, agreement from the majority of employees, and a demonstration of financial incapacity.
Complaints and Your Rights:
If you believe you are not receiving the minimum wage, it’s crucial to address the issue. Speak with your employer first and attempt to resolve the problem. If resolution is not possible, you can file a complaint with the Workplace Relations Commission (WRC) through an online form. The WRC offers two options: investigation by an inspector or referral to a WRC adjudicator.
Victimization Protections:
Employees seeking the minimum wage are protected from victimization or dismissal. You have the right to file an unfair dismissal claim if you were fired for asking for the minimum wage. Employers attempting to cut working hours to avoid increased costs must also reduce duties or workload.
Understanding Ireland’s minimum wage regulations, upcoming changes, and your rights as an employee is crucial for ensuring fair compensation. Stay informed, address concerns with your employer, and utilize the available channels to uphold your right to the minimum wage.
