Ireland – All You Need To Know About The New National Minimum Wage 2022

The new National Minimum Wage (NMW) in the Republic of Ireland took effect from the 1st of January 2022, with increases for various age groups as follows:

• For people aged 20 or more will be €10.50 per hour
• For 19-year-olds, the minimum hourly wage will be €9.45
• For 18-year-old workers, the minimum wage rate will be €8.40
• For workers under 18, the rate will be €7.35

What Does The National Minimum Wage Include?

The above statutory minimum hourly rates of pay are gross amounts. Gross pay (which is the total pay before the deduction of any money such as tax or pension contributions) includes:

• Basic salary
• Any shift premium (for example, extra Sunday pay)
• Bonus
• Service charge

Is Anyone Exempt?

The National Minimum Wage Act 2000 applies to all employees except the following categories of employees:

• Close relatives of the employer such as a spouse, father, mother, son, daughter, brother, and sister.
• Recognised apprentices within the meaning of the Industrial Training Act, 1967 and Labour Services Act, 1987.

 

Do You Need To Comply As An Employer?

An employer by law must pay the appropriate minimum hourly rate of pay. It is a criminal offence to pay an employee less than NMW and, failure to comply with the National Minimum Wage Act 2000 can expose employers to claims. An adjudication officer at the Workplace Relations Commission can order shortfalls in wages to be rectified, and paid to the employee. The employee can also be awarded reasonable costs in respect of bringing the claim.

 

How Long Should You Keep NMW Records? 

In any dispute about national minimum wage entitlements, the responsibility is on the employer to prove that the organisation complied with the law.

This requires records that have been kept for three years by the employer. If there is no method of electronically recording employee work hours (ie, a clock-in system), the employer must record the days and hours worked each week using an OWT1 form or a similar form.

It is also worth noting that employees have the right to ask an employer for a written statement from an employer, detailing their reckonable pay, working hours, the average hourly rate of pay, and statutory minimum hourly rate of pay entitlement under the Act. The statement should include the pay reference period(s) within the previous twelve months. This is why employers must retain these records as outlined above.

 

Additional Steps To Note 

Employees are entitled to a written statement from their employer within five(5 )days of starting work, which must include details of the rate or method of calculating pay and the pay reference period. Employees must receive a written statement of the remaining terms of employment within two (2) months of commencing employment.

Employers must always ensure contracts are up to date and reflect current legislation, including the National Minimum Wage Act. 

If you need your contracts reviewed and updated or have any queries regarding this, please contact- justyna.kowalska@thinkpeople.co.uk or call +353861032213.