Minimum Wage to be Cut
January 20, 2011
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Posted by Money Guide
As announced as part of the Four Year National Recovery Plan – the national minimum wage is going to be cut from €8.65 an hour to €7.65 an hour. This is a 12% drop. The new rates come into effect on February 1st 2011
One of the reasons given for this cut is to help businesses grow by cutting costs.
The Recovery plan states that…..
“Introduced in 2000 at a rate of €5.59, the National Minimum Wage (NMW) is currently set at €8.65. It has been increased six times since its introduction and is now 55% higher than its original level. By end 2010 the consumer price index is forecast to have increased by approximately 28% since 2001.”
A weeks wages on €7.65 an hour works out at about €298 . Someone on Jobseekers Benefit plus medical card and rent supplement may not think it is worth bothering with a job if they are not much better off financially .
See details of the new Minimum Wage Levels in Ieland
Categories: Budget 2011, Minimum Wage, National Recovery Plan, Welfare Benefits
At €7.65 p.h. would you be included in the new tax bands that will no doubt be changed in the budget? Paying tax at 20% on €298 won’t leave you much. They are also deceasing the jobseekers benefit. So those on limited income presently will be worse off yet again. Where are the jobs anyway, even at NMW?
Has this new minimum wage come into effect yet.
Aine – apparently the legislation was enacted on Dec 22nd – so it sounds like it is in place now.
Margaret,
€298 x 52 weeks is €15,496, 20% of which is €3,100, this is below the level of tax credits so there will be no income tax paid on it.