Minimum Wage in 2020

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 the effect on the economy.

Read About The Minimum Wage in Ireland from January 1st 2022.

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%)

A worker getting paid €10.10 an hour who works 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.

Living Wage

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)

Details of the Minimum Wage in 2019 Here