Government approves increase in the National Minimum Wage from 1 January 2021

12 October 2020

On 6 October 2020 Minister for Social Protection, Heather Humphreys, secured Government approval to increase the National Minimum Wage to €10.20 per hour from 1 January 2021.

This represents a 10 cent increase on the current National Minimum Wage of €10.10 per hour. It is expected that this will benefit 122,000 low-paid workers.

Minister Humphreys also commented that her intention is to ensure that the increase in the minimum wage does not result in employers having to pay a higher level of PRSI charge solely due to this increase. The Minister confirmed she will make regulations that will increase the employer PRSI threshold from €395 currently to €398 from 1 January 2021.

Employers should take this update into account when planning for 2021 costs and to ensure compliance with minimum wage legislation.

For further advice on minimum wage compliance in Ireland, please contact Edel Flynn, Associate, Maura Connolly, Head of Employment & Employee Benefits or another member of the Employment & Employee Benefits Team at Eugene F Collins.

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