New minimum wage levels set for coming year

IMPACT – MEDIUM

What is the change? Ireland will increase its minimum wage from €9.55 per hour to €9.80 per hour Jan. 1.

What does the change mean? The change could affect the base salaries paid to employees in several work permission categories, including those working on Atypical Working Scheme, dependents or interns on employment permits and, in some cases, those working on intra-company transfer permits or contract for services permits.

• Implementation time frame: The new minimum wage will take effect Jan. 1.
• Visas/permits affected: ICTs, AWS, 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 salary requirement 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.

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

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.