New minimum wage levels set for coming year
What is the change? Ireland has increased its minimum wage from €10.10 per hour to €10.20 per hour on 01 January 2021. This change represents a 1% increase in the minimum salary levels. The change will affect the base salary requirements for several work permission categories, including: Atypical Working Scheme permissions, Internship Employment Permits, Intra-Company Transfer (ICT) Permits, Contract for Services Permits.
Implementation time frame: The new minimum wage is in effect from 01 January 2021.
Who is affected: All employees in Ireland who currently earn €10.10, should see a 10 cent increase in their hourly salary. This includes foreign workers. This will specifically impact non-EEA national workers who are on the following permission to allow them to work in Ireland: Atypical Working Scheme permission, Internship Employment Permit, Intra-Company Transfer Permit and Contract for Service employment permit holders.
Next Steps: Employers 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. Intra-Company Transfer Permit and Contract for Services Permit holders 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.
For more information on the above talk to The HR Lounge today on 056 7712471 or email liz@jjbyrne.ie. We can guide you through any changes necessary for your business.