Minimum Wage - Employers, are you up-to-date?
The Minimum Wage is set to increase from 1 January 2016. The rate for adults will rise from €8.65 to €9.15 per hour, an increase of 50 cent.
Minimum Wage applies to all employees, including full-time, part-time, temporary and casual employees, the only exceptions are for close relatives of employers and apprentices under the Industrial Training Act 1967.
The new rates are listed below
- Experienced Adult Worker - €9.15
- Under the age of 18 - €6.41
- In the first year after the date of first employment over the age 18* - €7.32
- In the second year after the date of first employment over age 18* - €8.24
* Employment experience prior to age 18 is not taken into account for these rates.
Sunday Pay
If not already included in the rate of pay, employees are generally entitled to a premium payment for Sunday working, or paid time off in lieu.
The Living Wage
Recently there have been discussions around the introduction of a Living Wage of €11.50 per hour. Supporting bodies believe this is the required rate of pay in order to have an acceptable standard of living. However, for many small employers such an increase would pose a significant financial burden, which could result in the loss of jobs, rather than the creation.
Compliance
The Workplace Relations Commission (WRC) holds responsibility for securing compliance with the minimum wage, formerly held by NERA. In 2014 almost 5,600 inspections were carried out on random workplaces across Ireland. These resulted in €861,416 of unpaid wages being recovered.
The Message for Employers
Employers need to be compliant with the minimum wage. Employers need to be sure they remain compliant come 1 January, when the new rates come into effect. To avoid confusion and stress come the holiday period, employers should be looking at reviewing pay rates and contracts of employment now.
Bright Contracts - Employment Contracts and Handbooks
