17 January 2018 - Payroll News
Minimum Wage 2018

National Minimum Wage Increase 2018

6 months ago we highlighted that the Irish National minimum wage was set to increase, additionally we noted the same in our Budget 2018 Highlights, and as of January 1st 2018 the increase came into effect.

Minimum Wage Increase | Paycheck Plus Payroll Compliance

What is the minimum wage in Ireland?

There are different hourly minimum wage rates that apply to specific categories of people. The categories are:

  • Experienced adult employees
  • Employees under 18
  • Employees over 18 in their 1st year of employment
  • Employees over 18 in their 2nd year of employment
  • Employees over 18 in training or study that satisfy specific conditions set out here.

What is the minimum wage for experienced adult employees?

The minimum wage rate for an experienced adult worker is now €9.55 per hour. This is a 3.2% rise on the previous minimum wage rate of €9.25 per hour. This rate applies to experienced adult employees which are considered to be workers that are:

What is the national minimum wage for employees under 18?

Workers under 18 are entitled to 70% of the minimum wage rate for experienced adult workers, this equates to €6.69 per hour. The rate is up 3.2% on the previous entitlement rate of €6.48.

What is the minimum wage rate in Ireland for employees over 18 in their 1st year of employment?

Employees over 18 in their 1st year of employment are entitled to €7.64 per hour (80% of the rate for an experienced adult worker). This is a minimum wage increase of 24 cents on the previous rate of €7.40.

What is the Irish minimum wage rate for employees over 18 in their 2nd year of employment?

Workers over 18 and in their 2nd year of employment are entitled to €8.60 per hour (90% of the rate for an experienced adult worker). This is a minimum wage increase of 27 cents on the previous rate of €8.33.

What is the minimum wage for employees over 18 but in training or study?

Workers that are over 18 and in training or study that does NOT meet the specific conditions set out in S.I. No. 99/2000 – National Minimum Wage Act, 2000 (Prescribed Courses of Study Or Training) Regulations, 2000 are entitled to the appropriate rates mentioned above. If, however, the conditions are met then different entitlement rates apply depending on their period of training / study.

These employees in the first 3rd of their course are entitled to €7.16 per hour, while employees in their second and third period of their course are entitled €7.64 per hour and €8.60 per hour respectively.

Ensure Payroll Compliance

Payroll compliance requirements change regularly and it’s imperative that HR, payroll teams, accountant’s etc. keep up with these changes otherwise significant penalties can be incurred. Payroll mistakes, or calculations based on outdated information, can be costly for companies and ensuring payroll compliance can be difficult for businesses and staff that don’t have payroll as a core focus. However, here at Paycheck Plus, we keep up to date with the most recent legislation developments so you don’t have to. Our global award winning payroll specialists ensure that your payroll is compliant with the continuous regulation advancements.

To ensure payroll compliance and for expert support contact Paycheck Plus today.

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