THE NATIONAL MINIMUM wage will rise by 10c on 1 January 2021.

Minister for Social Protection Heather Humphreys said today that the government had approved the rise in the national minimum wage to €10.20 an hour. 

She said today that the move would benefit 122,000 low-paid workers.

“I also want to ensure that the increase in the minimum wage does not result in employers having to pay a higher level of PRSI charge solely due to this increase,” she said.

“I will make regulations that will increase the employer PRSI threshold from €395 currently to €398 from 1 January 2021.”

The recommendation for a 10c rise in the minimum wage was made last month by the Low Pay Commission.

However, trade unions withdrew at a late stage from the government-established commission. This followed a disagreement between the Irish Congress of Trade Unions (ICTU) and other members over the proposed rate of increase. 

The move led to clashes in the Dáil between the Taoiseach and Mary Lou McDonald. The Sinn Féin leader accused the government of turning its back on workers. 

Micheál Martin, on the other hand, accused Sinn Féin of trying to make political capital from the dispute. 

In her statement announcing the rise today, Minister Humphreys thanked members of the Low Pay Commission for their work.

She added: “The Low Pay Commission plays an important role in improving data collection on low paid and minimum wage workers and developing a strong research base on issues surrounding the minimum wage.  I would like to thank the membership of the Commission for their work this year, as well as the work it has carried out since its foundation.”