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Dec 2019

20

Minimum wage to rise to €10.10 per hour

Minister, Regina Doherty, has announced that from 1 February 2020, the minimum wage will increase from €9.80 per hour to €10.10.

The decision to increase minimum wage by 30 cent follows a recommendation in October by the Low Pay Commission. Strong economic growth and greater certainty surrounding Brexit were two key factors in the decision to introduce the increase.

In order to ensure that the increase in the minimum wage does not result in employers attracting a higher level of PRSI, the employer PRSI threshold will increase from €386 to €395 from 1 February 2020.

Minister Doherty is quoted as saying that; “with this most recent increase in the National Minimum Wage, an employee on minimum wage who works a full 39 hour week will now receive an additional €11.70 per week, or an extra €608.40 gross per year.” It is estimated that over 127,000 workers will benefit from the increase.

Employers should also note that the minimum wage for younger workers will also increase:

  • Aged 19: €9.09
  • Aged 18: €8.08
  • Under 18: €7.07