Minimum-wage hike affecting several work permit categories

IMPACT – MEDIUM

What is the change? Ireland has increased its minimum wage 3 percent from €9.25 per hour to €9.55 per hour.

What does the change mean? The change could affect the wages paid to workers in several work permit categories, including those working on Atypical Working Scheme (AWS) visas, dependents or interns on employment visas and, in some cases, those working on intracompany transfer (ICT) permits or Contract for Services permits.

• Implementation time frame: Immediate and ongoing. The new minimum wage took effect Jan. 1.
• Visas/permits affected: ICTs, AWS visas, Contract for Services permits, dependent permits, internship permits.
• Who is affected: All employees in Ireland, including foreign workers.
• Business impact: Companies should budget for the higher wages and make sure they are meeting the new pay threshold.

Background: All employment 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. ICTs and Contract for Services permits 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.

BAL Analysis: Companies should identify employees and assignees whose salaries require adjustment and make the appropriate increases to meet the new statutory minimum wage.  

This alert has been provided by the BAL Global Practice group. For additional information, please contact ireland@bal.com.

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