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Dublin: 6°C Thursday 25 February 2021

Minimum wage to increase to €10.10 per hour from February

The proposed introduction was initially deferred because of uncertainty over Brexit.

Image: Shutterstock/Marian Weyo

THE NATIONAL MINIMUM wage will increase to €10.10 per hour from 1 February, the government has announced.

A decision to accept a recommendation by the Low Pay Commission to increase the minimum wage by 30 cent per hour was accepted in October.

However, the government postponed the introduction of the wage increase the same month, saying it would do so after there was greater clarity regarding Brexit and the ability of businesses to absorb an increase.

Traditionally, the Low Pay Commission’s recommendations on minimum wage have been accepted by the Government in the autumn and come into effect the following January.

Announcing the hike, Minister for Employment Affairs and Social Protection Regina Doherty suggested the new wage could assist vulnerable members of society.

“All types of work should pay well and it is my determination that a job should really lift people out of poverty,” she said.

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“The ongoing increases in the minimum wage help to ensure that happens.”

In order to ensure that the increase in the minimum wage does not affect the PRSI rate paid by employers, the employer PRSI threshold will increase from €386 to €395 from 1 February as well.

The 30 cent increase will still leave the wage significantly below €12.30 per hour, which a report from the Living Wage Technical Group deemed to be the living wage in Ireland.

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