New Minimum Wage Rate

Low Pay Commission

From 1 January 2024 the National Minimum Wage rate increases from €11.30 to €12.70 per hour.

The National Minimum Wage applies to most employees. It is the minimum hourly pay rate that must be paid. It applies to full-time, part-time, temporary, casual employees and seasonal workers.

The following categories of employees are excluded

-Employees who are close relatives of the employer, where the employer is a Sole Trader, such as a spouse, civil partner, parent, step-parent, grandparent, child, step-child, grandchild, sibling or half-sibling of the employer.

-A craft apprentice within the meaning of the Industrial Training Act, 1967, or the Labour of Services Act, 1987.

Minimum rates of pay for other sectors

There are different minimum rates of pay for employees in other sectors which are set out in Sectoral Employment Orders and Employment Regulation Orders.

What can be included as pay for the National Minimum Wage (reckonable components) *

The following can be included to make up the national minimum wage

-normal basic pay

-shift allowances or other similar payments

-any fee, bonus or commission

-Zero Hours payments

-Board & Lodgings

-Service charge given through the payroll

What can’t be included for the National Minimum Wage (non reckonable components) *

The following payments cannot be included to make up the national minimum wage rate:

-any payment of expenses incurred by the employee in carrying out his/her employment

-Premiums including overtime, public holiday, Saturday, Sunday, unsocial hours or call out

-Allowances for special duties including a post of responsibility, on call or standby

-Tips or gratuities paid into a central fund and paid through the payroll

-any payment to the employee not made for their role as an employee

-any payment in kind or benefit in kind.

-any sum payable to an employee in lieu of notice of termination of employment

*these are not full lists

Board & Lodgings

If board and/or lodgings i.e. meals and/ or a place to live, is part of the minimum wage then the following amounts can be included to make up the national minimum wage rate:

Amounts for 2023:

-Meals €1.01 per hour worked

-€26.70 for accommodation only per week or €3.81 per day

⭐Increased rates from 01 January 2024:

-Meals €1.14 per hour worked

-€30.00 for accommodation only per week or €4.28 per day

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 reckonable pay by the numbers of hours worked in pay reference period.

The right to receive the minimum wage cannot be waived in a contract as any provision in an agreement to do so is void as a matter of law.

Failure to pay the national minimum hourly rate of pay is a criminal offence, punishable upon summary conviction, by a fine not exceeding €2,500 or imprisonment not exceeding 6 months or both.

In addition, an employee not in receipt of the national minimum hourly rate of pay may refer a complaint to a WRC Adjudication Officer who may order payment of the wages unpaid or underpaid. If you feel you are not receiving the correct pay rate, you can click to contact the WRC

Full publications: Click here