Negotiating your pay with your employer is common, but there exists a minimum wage mandated by the National Minimum Wage Act 2000 for most employees. As of January 1, 2024, the national minimum wage stands at €12.70 per hour. However, certain demographics, such as individuals under 20, may receive sub-minimum rates.
Different rates for certain sectors
Specific sectors, like security and cleaning, may have alternative minimum rates established through Employment Regulation Orders (EROs). Regardless of these sector-specific rates, employers must ensure that their employees receive at least the legal minimum wage.
What constitutes pay?
The minimum wage calculation includes various components of your gross wage, such as basic pay, shift premiums, bonuses, commissions, and service charges processed through payroll. Additionally, if provided by the employer, the value of food (board) or accommodation (lodgings) is factored into the minimum wage calculation.
Hourly rate calculation
Your hourly rate is determined by dividing your gross pay by the total number of hours worked, as stipulated in the National Minimum Wage Act 2000 Section 20. Clarity regarding included pay, working hours, and the pay reference period (weekly, fortnightly, or monthly) is essential.
Working hours
Working hours encompass the documented hours in your employment contract or collective agreement, or the actual hours worked or available for work and compensated. Overtime, travel time integral to the job, and approved training during normal working hours are included, whereas standby time away from the workplace or during leave is not counted.
Pay reference period
Employers select a pay reference period (e.g., weekly, fortnightly, or monthly) to calculate the average hourly pay. This period must be disclosed in the statement of employment conditions provided to employees, allowing them to request a written statement of their average rate of pay within the last 12 months.
Exclusions from pay calculation
When computing the minimum wage, certain components are excluded, such as overtime premiums, call-out premiums, and unsocial hours premiums. Other exclusions include allowances, service pay directly given to employees, and certain payments unrelated to employment.
- Compensation for overtime, call-out, or unsocial hours
- Additional premiums for working public holidays, Saturdays, or Sundays
- Allowances for special duties or responsibilities
- On-call or standby payments
- Service pay received directly or from a central fund
- Payments during absences like sick leave, holiday pay, or health and safety leave
- End-of-employment payments including retirement, redundancy, or advance salary
- Employer contributions to occupational pension schemes
- Non-cash benefits unrelated to board or lodgings
- Payments disconnected from employment obligations, including injury compensation or tool loss reimbursement
- Awards from staff suggestion schemes or loans provided by the employer
- Workers Not Entitled to Minimum Wage
Employees not entitled to the national minimum wage include those employed by close relatives, individuals in statutory apprenticeships, and those aged under 20, subject to specific rates.
Minimum rates of pay
As of January 1, 2024, the national minimum wage is €12.70 per hour. However, varying rates apply to different age groups, with percentages of the minimum wage specified accordingly.
- 20 and over: €12.70 (100%)
- 19: €11.43 (90%)
- 18: €10.16 (80%)
- Under 18: €8.89 (70%)
Employer’s Ability to Pay Minimum Wage
Employers experiencing financial difficulties can seek permission or exemption from paying the minimum wage for a limited duration, subject to approval by the Labour Court and agreement from the majority of employees.
Protections against victimisation
Employees requesting the minimum wage are protected from victimisation or dismissal by law. In cases of unfair dismissal, employees can claim irrespective of tenure or weekly hours worked.
How to file a complaint
If the minimum wage is not received, employees should initially address the matter with their employer. If unresolved, complaints can be lodged through the Workplace Relations Commission (WRC), either for investigation by an inspector or referral to a WRC adjudicator.
Living wage for all
By 2026, a national living wage will supersede the national minimum wage, set at 60% of the median wage annually. Until fully phased in, the national minimum wage will persist, continuing its incremental adjustments over time.
