On 1st February 2020 the national minimum wage in Ireland was increased to €10.10 per hour from €9.80.
Normally a minimum wage rise would take place from January 1st – but the Government decided to delay the date of implementation because of fears of a “no -deal” Brexit and it’s effect on the economy.
From February 1st 2020 – these are the new minimum wage rates.
- Aged 20 or more : – €10.10 per hour
- Aged under 18 : – €7.07 per hour (70%)
- Aged 18 : – €8.08 per hour (80%)
- Aged 19 : – €9.09 per hour (90%)
Someone on the new €10.10 minimum wage who is working full time for 39 hours a week will earn €20,483 a year before deductions.
It was announced on January 10th 2020 that the USC threshold will also be raised in line with the minimum wage. So the current ceiling of the 2% USC rate will go up from €19,874 to €20,484.
Take Home Pay on Minimum Wage
For someone working 39 hours a week getting the 2020 minimum wage of €10.10 an hour they will have annual deductions as listed below…
- Income tax deductions of €797 ;
- PRSI €558
- USC €229 –
- This leaves a take-home annual pay of €18,889 or €363 a week.
- This is an increase of just €6 a week compared to the take-home pay of €357 when getting the €9.80 minimum wage in 2019.
The Living Wage is a level of pay recommended by the Living Wage Technical Group. It is not mandatory – just advisory. In 2020 – that advisory body raised its recommended minimum living wage from €11.90 per hour to €12.30. Lidl is one company in Ireland that pays the Living Wage.
Someone earning the Living Wage doing 39 hours a week would earn €24,944 gross a year.This would result in take home pay of €419 a week (After tax, usc and prsi of €3132 a year)