Home Knowledge National Minimum Wage to be Increased by 10 cent per hour from 1 January 2021

National Minimum Wage to be Increased by 10 cent per hour from 1 January 2021


The Government has issued a Press Release announcing its approval to increase the National Minimum Wage (Minimum Wage) to €10.20 per hour with effect from 1 January 2021, representing a 10 cent increase on the current hourly Minimum Wage.  The increase will benefit over 122,000 workers currently working on the Minimum Wage. Unions have criticised the increase of less than 1% as inadequate.

In announcing the increase, the Minister for Social Protection, Heather Humphreys (Minister), noted that the Minimum Wage has increased from €8.65 in 2016 to its current rate of €10.10. The Minister has pledged to reform PRSI thresholds to reflect this increase and support employers by ensuring they do not have to pay a higher level of PRSI charge solely based on the increase. The Minister will introduce regulations that increase the employer PRSI threshold from €395 to €398 from the date the Minimum Wage increase comes into effect (1 January 2021).

The Minister acknowledged the pivotal role played by the Low Pay Commission in improving data collection on low paid and Minimum Wage workers in addition to developing a strong research base on issues concerning the Minimum Wage.

For further information and advice on how this increase may impact your business, please contact Catherine O’Flynn, Jeffrey Greene or your usual William Fry contact.

Our partners, associates and our support teams are available as usual to support your business.