New minimum wage levels set for 2024 in Ireland

What is the change?

Ireland will increase its minimum wage to 12.70 EUR per hour on 1 January 2024. The change will affect the base salary requirements for several work permission categories, including: Atypical Working Scheme permissions, Internship Employment Permits, Intra-Company Transfer (ICT) Employment Permits, Contract for Services Employment Permits.

Key points:

Implementation time frame: The new minimum wage will take effect 1 January 2024.

Who is affected: Employees currently on an hourly salary of 11.30 EUR in Ireland should see a 1.40 EUR increase in their hourly salary to 12.70 EUR. This includes foreign workers. This may specifically impact non-EEA national workers who are on the following permissions to allow them to work in Ireland: Atypical Working Scheme, Internship Employment Permit, Intra-Company Transfer Permit and Contract for Service Employment Permit holders.

Next Steps:

• Employers in Ireland must comply with the National Minimum Wage Act, with the exception of certain employment of people under the age of 18 or people employed pursuant to Employment Regulation Orders and registered employment agreements. Employers should be sure to raise salaries to meet the new minimum wage.

• Intra-Company Transfer Employment Permit and Contract for Services Employment Permit holders allow employers to count certain allowances, such as housing or health insurance, toward meeting the minimum salary threshold required for the visa category. Employers should adjust the base remuneration to meet the higher national minimum wage before adding the allowances.

Analysis & Comments:

Deloitte welcomes the news of the increase in Ireland’s national minimum wage and hopes it continues to solidify Ireland as a destination point for global talent.

Employers should identify employees whose salaries require adjustment and make the appropriate increases to meet the new statutory minimum wage. Employers should also consider this when hiring any new employees.

If you have employees or potential new hires who are impacted by the above changes, please contact the Deloitte immigration team to assist.