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Definition
Your wage is the fixed, regular payment you receive for the work or services you provide to your employer. It is usually paid daily, weekly or monthly.
The national minimum wage is the minimum hourly pay rate employers must pay employees. It aims to protect employees by ensuring their pay rate is enough to cover the basic living costs.
The National Minimum Wage Act 2000 clarifies who should receive the national minimum wage, how to calculate it and what to include in the calculation. Most employees are eligible for the national minimum wage, including full-time, part-time or temporary employees and seasonal workers.
What is the Current National Minimum Wage?
Since 1 January 2024, Ireland’s national minimum wage is €12.70 per hour.
However, €12.70 per hour applies to people aged 20 and above.
- If you are 19, the minimum wage is €11.43 per hour.
- If you are 18, the minimum wage is €10.16 per hour.
- If you are under 18, the minimum wage is €8.89 per hour.
Who is Entitled to National Minimum Wage?
Most employees are entitled to the national minimum wage, including:
- full-time employees
- part-time employees
- casual or temporary employees
- employees on zero-hours contracts
However, there are some exemptions:
- You are a close relative of your employer, and the employer is a sole trader; they can pay you less than the national minimum wage.
- You are working as a craft apprentice.
Specific sectors have different minimum wage rates, rates of pay and conditions of employment, which are set out in an employment regulation order (ERO):
- security: €12.90 per hour for those over 18
- early learning and childcare: €13 per hour for those over 18
- contract cleaning: €13.30 per hour for those over 18
The minimum wage must also be paid for:
- work experience placements
- internships
- trial periods for position
- any other practices involving work that is either not paid or compensated with board and lodging
What Counts as Pay for the National Minimum Wage?
How to calculate the national minimum wage in the National Minimum Wage Act.
The national minimum wage is the gross wage (i.e., the employee’s total pay before any deductions for tax, social insurance, or other pension contributions).
The following categories make up gross pay:
- The normal basic pay
- Any premiums paid for specific shifts
- Any fee, bonus or commission
- Service charges such as tips or gratuities provided through the payroll
- Zero Hours payments
Board & Lodgings
If your employer provides board (food) or lodgings (accommodation), this needs to be factored into the minimum wage calculation:
- Board: €1.14 an hour
- Lodging: €30 a week or €4.28 a day
What Does Not Get Included When Calculating the National Minimum Wage?
The following payments are considered separate from the national minimum wage:
- Premiums for overtime, call-outs and unsocial hours, including public holidays and weekends
- Additional duties allowances (for example, on-call allowance)
- Tips paid directly to you or those placed in a central fund
- Payments you get when absent from work, for example, sick leave and holiday pay
- Payments you get when leaving your job, including on retirement
- Pension, compensation or redundancy payments
- Payments or benefits in kind (except board and lodging payments)
- Staff awards
- Loans provided by the Employer
How is the National Minimum Wage Calculated?
The national minimum wage is an hourly rate. To calculate your hourly rate, you need to know your gross pay and the number of hours you have worked.
Gross Pay
Ensure you understand what is included in your total pay, such as payments for extra shifts, overtime, and tips.
Working Hours
Working hours are either the hours of work outlined in your contract or collective agreement or the actual hours you have worked. They include your regular working hours, overtime, training, and travel if the travel is part of the job. Working hours do not include time spent on leave, standby, or travel to and from work.
Pay Reference Period
The pay reference period is the time frame that your employer uses to calculate your average hourly pay. It can be a day, a week, a fortnight or a month, but no longer than a month. Your employer must tell you what the pay reference period is.
Am I Paid the National Minimum Wage?
To know if you are paid the national minimum wage, you can ask your employer for a written statement of your average pay rate for any pay reference period in the last 12 months. They must give this to you within four weeks.
What is the Difference Between the National Minimum Wage and the National Living Wage?
The terms national minimum wage and national living wage are often used interchangeably. Currently, the national minimum wage is a legal requirement for employers to pay a specific amount. The national living wage is the term used to indicate the amount an individual needs to earn to cover basic living costs.
One way of understanding these terms is that the national minimum wage is the lowest amount employers can charge. In contrast, the national living wage is what people need to survive, avoid poverty, and help the broader economy.
From 2026, the terms will change, and the national living wage will replace the national minimum wage. The living wage will be 60% of the median salary paid to employees in Ireland. The median wage divides a working population into two equally sized groups, one below it and one above it.
Can my employer Refuse to Pay me the Minimum Wage?
No, if you are entitled to the national minimum wage, your employer is legally obliged to pay you the minimum hourly wage.
If you ask your employer to pay you the minimum wage and they refuse or dismiss you, you can make a complaint.
If the national minimum wage has increased and your employer tries to cut your working hours to avoid paying extra wages, this is not legal. They can only cut your working hours if they reduce your duties or the work you are asked to do.
