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Increase in National Minimum Wage and board and lodgings rates from 1 January 2019

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1. Information

There will be an increase in the National Minimum Wage hourly rate by 25 cent to €9.80 from 1 January 2019, and an increase in the board and lodgings rates in line with the National Minimum Wage increase.

 

2. Rationale and Background to the measure

At its meeting on 18 July 2018, the Government noted the contents of the Low Pay Commission’s fourth report, which includes a recommendation that the national minimum hourly rate of pay should be increased by 25 cent to €9.80 (Decision No. S180/20/10/2007A).

Following this, Minister for Employment Affairs & Social Protection, Regina Doherty signed an order on 4 October 2018 to increase the national minimum hourly rate of pay to €9.80.

The increase in the board and lodgings rates is in line with the National Minimum Wage increase.

3. Rates

From 1 January 2019, the National Minimum Wage hourly rate is €9.80.
The National Minimum Wage applies to all employees, including full-time, part-time, temporary and casual employees, except the following categories or employees who are excluded from its provisions:

  • employees who are close relatives of the employer, such as a spouse, father, mother, son, daughter, brother or sister;
  • employees undergoing structured training such as an apprenticeship (other than hairdressing apprenticeships).

For the purposes of the Act, the following payments are regarded as wages:

  • normal basic pay, as well as any overtime;
  • shift allowances or other similar payments;
  • any fee, bonus or commission;
  • any holiday, sick or maternity pay;
  • any other return or payment for work (whether made under the contract of employment or otherwise);
  • any sum payable to an employee instead of notice of termination of employment.

The following payments are not regarded as wages:

  • any payment of expenses incurred by the employee in carrying out his/her employment;
  • any payment by way of a pension, allowance or gratuity in connection with the death, retirement or resignation of the employee or as compensation for loss of office;
  • any payment referable to the employee's redundancy;
  • any payment to the employee otherwise than in his/her capacity as an employee;
  • any payment in kind or benefit in kind.

The current (and previous) National Minimum Wage rates as they apply to certain categories of employees are listed in the table below -

Employee

NMW Hourly Rates from 01/01/2019

NMW Hourly Rates from 01/01/2018

NMW Hourly Rates from 01/01/2017

NMW Hourly Rates from 01/01/2016

% of NMW

Experienced Adult Worker

€9.80

€9.55

€9.25

€9.15

100% 

Under age 18

 €6.86

€6.69

€6.48

€6.41

70% 

In the first year after the date of first employment over age 18, whether or not the employee changes employer during the year *

 €7.84

€7.64

€7.40

€7.32

 80%

In the second year after the date of first employment over age 18, whether or not the employee changes employer during the year *

 €8.82

€8.60

€8.33

€8.24

 90%

In a course of training or study over age 18, undertaken in normal working hours **

First 1/3rd period

€7.35

€7.16

€6.94

€6.86

75%

Second 1/3rd period

€7.84

€7.64

€7.40

€7.32

80%

Third 1/3rd period

€8.82

€8.60

€8.33

€8.24

90%

NB - Each 1/3rd period must be at least 1 month and no longer than 12 months.

Experienced adult worker named by the Labour Court in granting a temporary exemption to an employer from paying the national minimum hourly rate of pay.

NB - The minimum period of temporary exemption is 3 months and the maximum period is 12 months.

Labour Court will decide the lower hourly rate of pay that the employee must be paid for the period of the temporary exemption.

* Employment experience prior to age 18 is not taken into account for these rates.

** Training must be as prescribed by the Minister in regulations. (Please see S.I. No. 99/2000 - National Minimum Wage Act, 2000 (Prescribed Courses of Study Or Training) Regulations, 2000)

The National Minimum Wage Act may be viewed or downloaded HERE.

The Order giving effect to the New National Minimum Wage Rates from 1 January 2019 is available for viewing or download HERE

 
 
 
 
 
 
 
 
 
 

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