Minimum Wage Increase 2018

The Minimum Wage in Ireland will be increasing on January 1st 2018.

The Low Pay Commission recommended in June this year ,  that the National Minimum Wage for an experienced adult worker should increase to  €9.55 per hour. (The increase was only supported by six of the nine Commission members.)

Back in July 2017 the Taoiseach ,Leo Varadkar, announced that the increase to the Minimum rate of pay would take effect from January 2018 . It was  re-confirmed in Budget 2018.

This change works out as an increase of 3.2%  on the current rate of €9.25 per hour.

By 2018 – the minimum wage for an experienced adult worker will have increased by  10.5% since 2015 – when the minimum wage was €8.65 per hour.
It is estimated that about 10% of employees in Ireland are on the minimum wage (about 155,000 people)

Retail Ireland Director Thomas Burke was not happy with the increase – he said .. “With little to no inflation in consumer goods and growing concern over the impact Brexit is already having on the retail sector, there is absolutely no economic basis for a further increase to minimum wages,”

See the Minimum Wage Rates for 2017 here

These are the rates of the Minimum Wage that will apply from January 2018

  • Experienced adult worker €9.55 per hour
  • Over 19 and less than 2 years since first job  €8.60 per hour.
  • Over 18 and less than 1 years since began first  job  €7.64   per hour.
  • Aged under 18   €6.69 per hour

 

(An experienced adult worker –  for the purposes of the National Minimum Wage Act –  is an employee who has an employment of any kind in any 2 years over the age of 18.)

For example:  A 19 year old gets his first job on June 1st 2018 – he is entitled to €7.64 an hour. He won’t be entitled to €8.60 an hour until June 1st 2019 – the first anniversary of his first job. He won’t be entitled to €9.55 an hour until June 1st 2020 – the second anniversary of his first job.  It doesn’t matter how long he worked in each job or if there were gaps in employment.

 

4 thoughts on “Minimum Wage Increase 2018

  1. Hi, we arę working in the pub kitchen part time and emploer want that we pay PRSI tax. Is it legal?

  2. Hello
    I would Like to ask What about minimum wage for cleaners and security sectors? Is that changing too?

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