Budget 2024 - What are the changes?
Budget 2024 was announced on Tuesday, 10 October 2023. The Budget sets out an overall package of €12.3 billion. This is made up of a package of once-off measures worth €2.3 billion, a core budget package of €5.2 billion and non-core expenditure of €4.5 billion for 2024.
- It was announced that the minimum wage will increase from 1 January 2024. The national minimum wage for people aged 20 and over will increase by €1.40 to €12.70 per hour.
Age group Minimum wage from 1 January 2024
| Age 20 and over | €12.70 |
| Age 19 | €11.43 |
| Age 18 | €10.16 |
| Under 18 | €8.89 |
- Parents leave will increased from 7 weeks to 9 weeks paid leave from August 2024. Parent’s Benefit is paid in the first 2 years of the child’s birth or adoption. Employees must notify their employer their intent to take parent’s leave and dates no later than 6 weeks before their leave. They apply for Parent’s Benefit at least 4 weeks before the date they start your parent’s leave.
As well as the above, there has been changes to Personal tax, Capital tax, ESG, VAT and VRT.
Further information can be found here.
We linked a budget calculator as well to help see how Budget 2024 can help you! You can find it here.
Sectoral Employment Order (Construction Sector) 2023
The following minimum hourly rates of basic pay will apply in the sector from 18th September 2023 to 4th August 2024.
• Craftsperson €21.49 per hour
• Category A Worker €20.86 per hour
• Category B Worker €19.35 per hour
Apprentice
• Year 1 - 33.33% of Craft Rate
• Year 2 - 50% of Craft Rate
• Year 3 - 75% of Craft Rate
• Year 4 - 90% of Craft Rate
A minimum hourly rate of basic pay of €15.64 will apply for two years after entrance to the Sector to all New Entrant Operative Workers who are over the age of 18 years and entering the sector for the first time.
Minimum Pension Contribution
The following minimum pension contribution will apply in the sector Pension Contribution from 18th September 2023:
• Employer daily rate - €5.96 (weekly - €29.78)
• Employee daily rate - €3.97 (weekly €19.87)
Total contribution daily into the scheme per worker - €9.93 (weekly €49.65)
More information can be found here.
New Legislation Enacted and Proposed Bills or Initiatives
Quarter 4 of 2022 brought many proposed bills, initiative and legislations into place. These are outlined below.
The Payment of Wages (Amendment) (Tips and Gratuities) Act 2022
New Legislation Enacted
On December 1, 2022, the Payment of Wages (Amendment) (Tips and Gratuities) Act 2022 (the Act) came into effect. The Act introduced new requirements for employers regarding the distribution of electronic tips and gratuities, including the requirement to provide relevant employees with a policy on electronic tips and gratuities within five days of commencing employment. The Act applies to a number of sectors including tourism, hospitality, beauty and hair services, gaming, bookmakers, and transport services such as those provided by taxi or minibus.
Government Publishes Revised Work Life Balance and Miscellaneous Provisions Bill 2022
Proposed Bill or Initiative
In November 2022, the Government announced the integration of the Right to Request Remote Working into the Work Life Balance and Miscellaneous Provisions Bill 2022. The Bill is expected to be passed into law in the coming months.
As part of key changes proposed in the Bill, employees who have six months’ continuous service with their employer will have a legal right to request to work remotely. Employers will be required to either approve or deny the request within four weeks of receipt or eight weeks in certain circumstances. Employers are required to consider both parties’ needs and the guidance that will be set out in a Code of Practice.
Where an application is refused, an employer must inform the employee of the grounds for refusal in writing. Further, those with certain caring responsibilities will have a legal right to request flexible working arrangements. Additionally, the bill provides for paid domestic violence leave of up to five days’ paid leave in any period of 12 consecutive months.
Government Publishes Employment Permits Bill 2022
Proposed Bill or Initiative
In October 2022, the Government published the Employment Permits Bill 2022, which among other provisions proposes:
(i) The introduction of a new seasonal employment permit to cater for short term and recurrent employment situations in appropriate sectors;
(ii) Modernization of the labour market needs test requirement;
(iii) Additional conditions for the grant of an employment permit - such as training or accommodation support for migrant workers in some circumstances or making innovation or upskilling a condition of grant - where this may decrease future reliance on economic migration.
Gender Pay Gap Reporting – December Deadline
Upcoming Deadline for Legal Compliance
Employers with 250 or more employees on the June 2022 snapshot date were required to publish their gender pay gap reports over the course of December 2022, based on the June "snapshot" date they selected. In compiling their first report in-scope employers were required to publish information about the following:
• The mean and median gap in hourly pay between male and female employees
• The mean and median gap in hourly pay of part-time male and female employees
• The mean and median gap in hourly pay between male and female employees on temporary contracts
• The mean and median gap in bonus pay between male and female employees
• The percentage of male and female employees who received bonus pay;
• The percentage of male and female employees who received benefits in kind
• The percentage of male and female employees in each quartile pay band
Critically, such employers were also required to publish reasons for any differences and measures being taken (or proposed to be taken) to eliminate or reduce those differences.
While the reporting obligation initially only applied to organizations with 250 or more employees, this will reduce to 150 or more employees after two years, and 50 or more employee after three years.
Relevant Articles
Other 2023 Developments
There are multiple proposals for reform in the pipeline, which employers should keep an eye out for and review current practices and policies to ensure they comply with the upcoming changes. Further information on expected developments is below:
Flexible and remote work
Draft legislation is in place to allow eligible employees with children up to the age of 12 (or 16 if the child has a disability or long-term illness) and employees with caring responsibilities to request flexible working arrangements for a set period of time for caring purposes.
Employers will need to carefully consider and deal with these requests. While remote working will not be feasible for all employees, employers will still have to consider their own needs and the needs of their employees when considering a request. This looks like it won’t be in force until Summer 2023.
Steps towards a potential four-day working week are gaining momentum with some employers trialling the effectiveness of, or implementing, a four-day week for their organisations. While this may not be relevant to a lot of categories of staff, it is a trend employers should keep an eye on.
Family rights
Draft legislation is in place to allow a better work-life balance for parents and carers. The proposals include:
- five days' unpaid leave for medical care purposes
- an extension of the period during which time can be taken out from work to breastfeed
- the extension of maternity leave entitlements to transgender men
- 10 days' paid leave for victims of domestic violence
Employers should review existing processes with a view to preparing for and ultimately implementing these changes.
An additional proposal is to allow the bereaved parent of a child who has died to take bereavement leave. In relation to miscarriage, while paid maternity and paternity leave upon stillbirth or miscarriage is currently only available after the 24th week of pregnancy, there are proposals to make provision for paid leave before the 24th week. The proposals also provide for paid leave for the purposes of availing of reproductive healthcare such as in-vitro fertilisation.
Employment permits
Draft legislation is in place to streamline, improve and modernise the employment permit system. The proposals include a new type of employment permit for seasonal workers, allowing subcontractors to make use of the employment permit system, and additional eligibility conditions for certain employment permits to be specified.
Wage changes
Several pieces of legislation are being debated around minimum wages for interns and young people. A national "living" wage (the wage people need to take part in Irish society) is also to be introduced over a four-year period, to be in place by 2026, when it will replace the national minimum wage. The first step towards reaching the living wage is the 2023 increase to the national minimum wage. A number of large employers in Ireland have already announced increased wages for their employees in anticipation of the proposed living wage.
Other trends and policy areas to watch
Many employers may be considering embarking on redundancy or restructuring programmes during 2023. However, alongside the economic downturn and the continuing cost-of-living crisis, there is an ongoing skills shortage and battle to attract good people. It is therefore expected that there will be ongoing efforts to do the right thing and create the right culture through:
- menopause policies
- fertility policies
- focus on managing mental health
- embrace flexible and remote working including remote working from overseas locations
Managing Annual Leave & Public Holidays
These topics create some confusion amongst employers, this blog post will hopefully line out any confusion that employers may have.
What is a public holiday?
A public holiday is nationally recognised day when most businesses and other institutions are closed. They usually occur on a special day or event. For example, St Patrick's Day and Christmas Day.
In 2022 we were introduced to a new once off public holiday that will take place on Friday, 18th of March. From 2023 there will be a new annual public holiday in February to celebrate St Brigid’s Day, it will happen on the first Monday in February.
When are the public holidays?
• New Year’s Day
• First Monday in February, or 1st of February if the date falls on a Friday (2023 onwards)
• Saint Patrick’s Day
• Once off public holiday (18th March 2022 only)
• Easter Monday
• First Monday in May
• First Monday in June
• First Monday in August
• Last Monday in October
• Christmas Day
• St Stephens Day
What are employees entitled to?
Most employees are entitled to a day paid leave on public holidays. There is an exception for certain part-time employees.
If you qualify for public holiday benefit, you are entitled to:
• A paid day off on the public holiday
• An additional day of annual leave
• An additional day’s pay
• A paid day off within a month of the public holiday
Part time employees are entitled to a day’s pay for the public holiday if they meet the following requirements:
• You have worked for your employer at least 40 hours in the 5 weeks before the public holiday
• The public holiday falls on the day you normally work
If you are required to work on the day the public holiday falls you are entitled to an additional day’s pay. If you do not work on the day, you should get one fifth of your weekly pay.
Annual Leave
We all know that employers are obliged to provide paid annual leave under the Organisation of Working Time Act, 1997. This act applies to all employees working under a contract of employment.
The amount of holidays an employee receives is calculated by the amount of work the employee does in the leave year.
If an employee works 1365 hours in a leave year they will be entitled to 4 normal working weeks of annual leave.
To calculate annual leave for employees who have worked less than 1365 hours in the annual leave year, they receive one-third of a week for each month that 117 hours are worked or 8% of the hours worked up to a maximum of 4 working weeks.
Accrual of Annual Leave
Employees will begin to accrue annual leave from the first date of employment.
Accrued from hours:
- Physically and notionally worked
- All time on certified sick leave
- Time worked on public holidays
- Annual leave itself
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What you Need to Know About the Gender Pay Gap Information Act 2021
The Gender Pay Gap Information Act was signed into law on the 13th of July 2021. It will amend the Employment Equality Act 1998. This legislation introduced gender pay gap reporting to Ireland. The technical elements to this Bill have not been published yet but, The Act promotes the making of regulations through which reporting requirements will be specified. It is unclear what the specific reporting responsibilities for employers will be.
What is it?
The Gender Pay Gap is the difference in the average gross hourly pay of women compared with men in an organisation. It should not be confused with the concept of equal pay for equal work. The existence of the gender pay gap does not indicate discrimination by employers or that women are not receiving equal pay for equal work. Employers are required to pay employees on the same terms when they do “like work” which is defined as work that is the same, similar, or work of equal value.
What does the employer have to do?
The Act will require organisations to report on the gender pay differences between male and female employees. For the initial first two years of The Act, it will only apply to employers with 250 or more employees.
What information needs to be reported?
- Mean and median hourly remuneration for full time and part time employees
- Mean and median bonus remuneration
- Percentage of all employees who have received a bonus or benefits in kind.
The act also indicates further regulations that may be proposed to provide further clarity on:
- The class of employer, employee and pay to which the regulations apply
- How the remuneration of employees is to be calculated
- The form, manner and frequency in which information is to be published
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What you Need to Know About Irelands New Public Holiday
What is it and when will it happen?
The Government announced last week that there will be a once off extra public holiday on Friday the 18th of March 2022. It was introduced to recognise the efforts made by the general public, volunteers and all workers during the Covid-19 pandemic. This will result in a four-day weekend in the middle of March as St Patricks Day is also a public holiday.
Next Year, 2023, there will be a permanent public holiday introduced to establish the celebration of St Brigid’s Day. This will occur on the first Monday in February. If St Brigid’s Day falls on the first day of February, that happens to be a Friday, that Friday the 1st of February will be a Public Holiday.
This new public holiday will bring the number of public holidays in Ireland to 10, which is one of the lowest in Europe, compared to Austria and Sweden which have 13.
What does this mean for employers?
This announcement can bring cost implications for employers. Employees are entitled to a paid day off. If the employee is working that day, they are entitled to double pay or an additional day of paid leave.
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Get Informed About Wage Deductions
There can often be debates between the employer and the employee as to what can be legally deducted from an employee’s wages. Well the confusion is over because in this blog post we have detailed for you what are the legal deductions employers can make, including the special restrictions on employers in relation to any act or omission of the employee. Firstly, under the Payment of Wages Act 1991, the employee has a right to:
1. A negotiable mode of wage payment
2. A written statement of wages and deductions, i.e. a payslip
3. Protection from unlawful deductions from wages
The Act applies to employees engaged under a contract of employment or apprenticeship, employed through an employment agency or through a subcontractor or working for the State.
There are only 3 circumstances in which an employer may legally make deductions from an employee’s wages or receive any payments from an employee. These are:
1. If the deduction or payment is required or authorised by law, for example, income tax, PRSI, USC, local property tax (LPT), additional superannuation contribution (ASC), an attachment of earnings order (AEO) or a notice of attachment.
2. If the deduction or payment is provided for in the contract of employment, for example, employee pension contributions, deductions for uniforms etc.
3. If the deduction is agreed to in writing, in advance, by the employee, for example, medical insurance subscriptions, trade union dues.
There are however special restrictions placed on employers in relation to deductions or the receipt of payments from wages, which arise from any act or omission of the employee (e.g. till shortages, bad workmanship, breakages), or are in respect of the supply to the employee by the employer of goods or services which are necessary to the employment (e.g. the provision or cleaning of uniforms). Any deduction or payment from wages of the kinds described must satisfy the following conditions:
i. the deduction or payment must be provided for in the contract of employment
ii. the amount of the deduction, or payment, must be fair and reasonable having regard to all the circumstances including the amount of the wages of the employee .e. if it is substantial it should not be taken out of one single wage payment.
iii. Prior to the act or omission occurring, the employee must have previously been given written details of the terms of the contract of employment, governing deductions or payments, by the employer.
Written notice must be given to the employee in the case of each deduction or payment to the employer at least one week prior to the deduction being made and the employer must provide a receipt. The deduction cannot take place more than six months after the employee’s act or omission becomes known to the employer or after the provision of good and services to the employee. However, where a series of deductions are to be made, the first deduction must be made within six months. Most importantly, the deduction or payment cannot be more than the cost to the employer, in other words, the employer should not profit from the deductions.
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January 2018 - Increase to Minimum Wage
The National Minimum Wage for an experienced adult worker is increasing to €9.55 per hour from January 1st 2018. This is the third year in a row that the NMW has been increased but this is by far the largest with an increase of .30c
The National Minimum Wage Act, 2000 provides for a minimum hourly rate of pay for all workers.
All workers, including full time, part time, casual and temporary will be deemed to be covered by the act with only 2 exceptions; close relatives of the employer and certain industry specific apprentices.
Workers can be broken down into 5 different categories; experienced adult workers in employment more than 2 years and over the age of 18, a worker under the age of 18, workers in their first and second year of employment who are over the age of 18 and trainees’ who are undergoing a course that satisfies certain conditions set out in the Act.
The new minimum hourly rates are:
- Experienced adult worker – €9.55
- Under age 18 – €6.69
- In the first year after the date of first employment over age 18 - €7.64 per hour
- In the second year after the date of first employment over age 18 - €8.60
- In a course of training or study over age 18, undertaken in normal working hours-1st one third period: €7.17 per hour; 2nd one third period: €7.64; 3rd one third period: €8.60 per hour.
Breaches of the act are deemed to be criminal offences and are punishable with hefty fines and even imprisonment.
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Christmas Public Holiday Entitlements
There are three public holidays coming up over the festive season – Christmas Day, St. Stephens Day and New Year’s Day. Although many offices across the country will close during this period it can be one of the busiest times of the year for industries including retail, hospitality, and hair and beauty. So what public holiday entitlement are employees entitled to over this time?
Full-time employees
Full-time employees have immediate public holiday entitlement to one of the following:
• A paid day off that day
• A paid day off within a month of that day
• An additional day of annual leave
• An additional days pay
Part-time employees
If a public holiday falls on a day that a part-time employee usually works, they are entitled to one of the public holiday benefits as listed above, if they have worked at least 40 hours in total in the 5 weeks prior to the public holiday.
Where the public holiday falls on a day on which the employee does not normally work, the employee is entitled to one fifth of his/her normal weekly wage.
Sick leave, absence and public holiday entitlement
If a full time employee is on sick leave during a public holiday, they are entitled to one of the public holiday benefits as listed above. If a part time employee is on sick leave during a public holiday, they are also entitled to one of the public holiday benefits listed above, if they have worked at least 40 hours in total in the 5 weeks prior to the public holiday.
Employees absent due to maternity leave, adoptive leave, parental leave, annual leave and jury duty accrue public holiday entitlement as if they were at work. Employees on carer’s leave continue to accrue public holiday entitlement for the first 13 weeks absence on carer’s leave.
The following type of absences occurring immediately before the public holiday will not be entitled to public holiday benefit.
• Absence in excess of 52 weeks due to occupational injury
• Absence in excess of 26 weeks due to illness or injury
• Absence in excess of 13 weeks for another reason and authorised by the employer including lay off
• Absence by reason of strike
Termination of employment
Employees who leave employment during the week ending before a public holiday and have worked the 4 weeks prior to that week are entitled to receive the benefits outlined above for that public holiday.
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