IRELAND (January 01 2021) – New minimum wage levels set for coming year has been saved
IRELAND (January 01 2021) – New minimum wage levels set for coming year
IMPACT - Medium
What is the change? Ireland will increase its minimum wage from €10.10 per hour to €10.20 per hour on 01 January 2021. 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 will take effect 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.
Analysis & Comments:
Overall this is a positive and welcomed change.
Employers should identify employees whose salaries require adjustment and make the appropriate increases to meet the new statutory minimum wage. Employers should also consider this when hiring any new employees.
If you have employees or potential new hires who are impacted by the above changes, please contact the Deloitte immigration team to assist.