Increase to minimum wage affects several work permit categories

IMPACT – MEDIUM

What is the change? Ireland’s increase to its minimum wage from €9.15 per hour to €9.25 per hour took effect Jan. 1 and affects several work permit categories.

What does the change mean? The increase may affect employees on Atypical Working Scheme (AWS) visas, or dependents and interns on employment visas, as well as certain pay arrangements under Intracompany Transfer (ICT) permits or Contract for Services permits.

• Implementation time frame: Immediate.
• Visas/permits affected: ICTs, AWS visas, Contract for Services permits, dependent permits, internship permits.
• Who is affected: All employees in Ireland.
• Business impact: Companies should budget for the higher wages and make sure they are meeting the threshold for all workers.

Background: All employment in Ireland must comply with the National Minimum Wage Act, except for certain employees (those under 18 and those employed pursuant to Employment Regulation Orders and registered employment agreements). Employers should raise salaries to meet the new minimum wage. Additionally, 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 in the United Kingdom. For additional information, please contact uk@bal.com.

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