In this article on Minimum Wage in Ireland, you will be informed of:
- The new Minimum Wage increases,
- What to do with Hourly Pay Statements,
- How long to store Hourly Pay Statements.
New Minimum Wage amounts will come into effect in Ireland from the 1st of January 2023.
The Minister for Finance has announced that the National Minimum Wage is set to increase by 80c to €11.30.
From 1 January 2023 the following rates will apply:
| Employee Category | Hourly Rate |
| Aged 20 or above – | €11.30 |
| Aged 19 – | €10.17 |
| Aged 18 – | €9.04 |
| Under 18 – | €7.91 |
For the purposes of the National Minimum Wage, gross wage includes, for example, the basic salary and any shift premium, bonus or service charge.
Where an employer provides board or lodgings the maximum amounts that can be included to make up the National Minimum Wage rate in 2023 are:
- Meals €1.01 per hour worked,
- €29.70 for accommodation only per week or €3.81 per day.
To ensure that the minimum wage increase does not result in employers attracting a higher level of PRSI charge solely due to this increase, the employer PRSI threshold will increase from €410 to €441 per week from 1st January 2023.
Employers who have fixed-rate Sunday Premiums, as opposed to a percentage of the normal hourly rate, may have to review these to ensure their Sunday rates of pay are above the minimum wage.
The following categories of employees are excluded from the National Minimum Wage:
- Employees who are close relatives of the employer, where the employer is a Sole Trader;
- A craft apprentice within the meaning of the Industrial Training Act, 1967, or the Labour of Services Act, 1987.
Average Hourly Rate of Pay
The average hourly rate of pay must not be less than the national minimum wage hourly rate.
The average hourly rate of pay is calculated by dividing the gross pay by the numbers of hours worked in the pay reference period.
Statement of Average Hourly Rate of Pay
An employee has the right to ask for a statement in writing of their average hourly rate of pay for any pay period within the last 12 months. This must be presented by the employer in writing within four weeks of getting the request.
The statement should note:
- Details of reckonable pay with each pay area listed separately,
- Working hours of the employee,
- Average hourly pay,
- Minimum hourly rate of pay the employee is entitled to.
The statement should be signed by the employer and a copy of the statement should be kept by the employer for 15 months.
Bizimply’s document storage system is a great way to store all your documents in one centralised place and they can be accessed from anywhere on the go.
Bizimply helps you to stay compliant by storing all your documents and abiding by any legal regulations.
Records
An employer must keep records to show that employees have received their national minimum wage. The records must be kept for three years.
How do Bizimply manage hourly pay rates?*
Check out this article:
In the article, you will learn:
- How to update your Employee’s Hourly Pay Rates in bulk
- How to Check Employee’s Hourly Pay Rates
*You will need to have a Bizimply Account to manage pay rates with Bizimply.
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