New minimum wage to take effect Feb. 1

IMPACT – MEDIUM

What is the change? Ireland will increase its minimum wage from €9.80 to €10.10 per hour Feb. 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 Feb. 1, 2020.
• 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: The minimum wage applies to all workers in Ireland, 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. Higher wage minimums may apply for some foreign workers, including those holding Critical Skills Employment Permits. In some cases, employers can count certain allowances, such as housing or health insurance, toward the applicable minimum in a given visa category. Employers must be sure, however, to adjust base remuneration to meet the new national minimum wage before adding the allowances.

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

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