Just a reminder that the increase in the National Minimum Wage, announced by the Tánaiste in October, will come into effect from 1st January 2022.
From the beginning of next year, the recommendation from the Low Pay Commission, there will be an increase of 30 cent (just under 3%) and the minimum hourly wage will change to €10.50. This increase will affect approximately 135,000 people on minimum wage but will also have an effect on those under 18 who are entitled to a percentage of the minimum wage.
See the table below issued by the Department of Enterprise, Trade and Employment.
|Minimum Hourly Rate of Pay €||% of National Minimum Wage|
|National Minimum Wage (Aged 20 and over)||€10.50||100%|
|Aged under 18||€7.35||70%|
“The Government today agreed to accept the Low Pay Commission’s recommendation to increase the National Minimum Wage to €10.50 from the 1st of January next year. It is estimated that at least 135,000 people will get this increase with many others on slightly higher pay levels also getting a knock-on increase. I hope this, along with the other measures we are announcing as part of the Budget, will go some way to protecting the lowest paid workers from the rising cost of living.
“Since 2015, the National Minimum Wage has increased from €8.65 per hour to its current rate of €10.20 per hour, or more than 17%, which is substantially more than inflation during that period. I offer my thanks to all the members of the Low Pay Commission for all their work this year, in putting together this recommendation to Government. Work is also ongoing on the development of a Living Wage for Ireland, and I expect to be in a position to take a proposal to Government on that in the first half of the new year.”
The Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar TD
This increase again highlights small anomalies, the consequential increase in employer PRSI payments and the increased tax liability (potentially making employees less well off as all their income becomes liable for Employee’s PRSI once they exceed a certain threshold when it had previously been exempt). These issues will be addressed no later than the end of June 2022, and we will update you as soon as we become aware of further developments.