Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
THE NATIONAL MINIMUM wage will rise by 10c on 1 January 2021.
Minister for Social Protection Heather Humphreys said today that the government had approved the rise in the national minimum wage to €10.20 an hour.
She said today that the move would benefit 122,000 low-paid workers.
“I also want to ensure that the increase in the minimum wage does not result in employers having to pay a higher level of PRSI charge solely due to this increase,” she said.
“I will make regulations that will increase the employer PRSI threshold from €395 currently to €398 from 1 January 2021.”
The recommendation for a 10c rise in the minimum wage was made last month by the Low Pay Commission.
However, trade unions withdrew at a late stage from the government-established commission. This followed a disagreement between the Irish Congress of Trade Unions (ICTU) and other members over the proposed rate of increase.
The move led to clashes in the Dáil between the Taoiseach and Mary Lou McDonald. The Sinn Féin leader accused the government of turning its back on workers.
Micheál Martin, on the other hand, accused Sinn Féin of trying to make political capital from the dispute.
In her statement announcing the rise today, Minister Humphreys thanked members of the Low Pay Commission for their work.
She added: “The Low Pay Commission plays an important role in improving data collection on low paid and minimum wage workers and developing a strong research base on issues surrounding the minimum wage. I would like to thank the membership of the Commission for their work this year, as well as the work it has carried out since its foundation.”
To embed this post, copy the code below on your site
If the pandemic doesn’t close your business, they government will make sure that they do!
@Jurga Moylan: you disagree with people getting paid a bit more?
@Kieran Stafford: “you disagree with people getting paid a bit more?”
Absolutely not but is a blanket government edict the best way to raise peoples wages? During a pandemic?
Most small to medium sized businesses are struggling as it is.
@Kieran Stafford: Many will end up getting paid a bit more but it could lead to some getting paid 100% less.
@Will: what is the best way for workers to get rise. Its amazing employers can join a lobby group like ibec and they can advise them but employees can join a union but the employer does not have deal with their representatives. Even when companies are doing well they give miserable wage rises on a very low rate of pay. If employers were compelled to recognise unions we might not need such a blunt instrument to give an increase
@Kieran Stafford:
Of course I don’t agree with people getting paid more but if u can see beyond your rose tint glasses you’ll realise that during a pandemic and an economic downturn that a wage increase is not very economical. I’d rather see businesses remain open and people keep their jobs during this time than to give them an unaffordable wage increase that will no doubt cause lots of job losses that might otherwise have been saved.
@Jurga Moylan:
Disagree *
@Mickety Dee: employees will still earn considerably less than the living wage. An increase of €4 per week per employee is hardly going to bankrupt a company.
@EillieEs: Legit. If you can’t pay your staff enough to actually live on, you don’t deserve to be in business. The amount of people who think it’s laudable to own a business that pays poverty wages is astounding.
@Will: if Ireland didn’t have a min wage business would be paying everyone a lot less,
@Jurga Moylan: 3-4 euro a week, are you kidding…
@Kieran Stafford: think the point Jurga was making is that there wont be any jobs in January
@Jurga Moylan: Good riddance if they’re not paying their staff a living wage.
@Barry: “if Ireland didn’t have a min wage business would be paying everyone a lot less,”
A lot less? Are you normally prone to baseless exaggeration.
Without minimum wage laws wages would depend on the strength of the economy. Forcing businesses to pay a minimum is fine during a boom but when a recession hits they inhibit job creation.
Like I said, I’m in favour of people getting paid more but the minimum wage set at an arbitrary number and applied across all sectors is a very blunt instrument and can have a negative effect on employment.
@Jurga Moylan: well tell that to the people that are running the country cos they are getting a pay rise. All TDS are in line for a pay rise.
@Jurga Moylan: if you cannot afford to pay such pitifull wages you should not be in business
@Kieran Stafford: Will you tell me what I can spend my extra 10c an hour on. I’m waiting with bated breath!!!!!
@Kieran Stafford: people might complain having to pay a bit more as a result.
A 10c raise is genuinely an insult to anybody earning minimum wage.
Less than €5 per week better off than before…
@Ryan Maher: that averages almost 20K per annum gross. I would have thought that was high for such roles. Seeing that you wouldnt pay much tax on that either. Plus slight deflation this year too.
Imagine being an employer paying a min of that… Wow!
@De Rossi: try living on it
@De Rossi: “I would have thought that was high for such roles.” No, quite the opposite, it’s over €5k less than the living wage. People on minimum wage have the same bills and commitments as everyone else so just wondering who exactly you think should be paid too little to afford their basic needs? Whatever happened to the concept of a decent day’s pay for a decent day’s work?
@Ryan Maher: If they reduced the minimum wage by 10c an hour, we would have an uproar, and we all would be told how important 4 euro extra a week is to people on the minimum wage.
@De Rossi: Such roles??
@Sean Nihill: thats a different point altogether. But it is called minimum wage not living wage. Therefore it is the minimum someone can be paid. I started out in my profession maginally above this.
@Tennyson: yes… Minimum wage roles. Whats your point. There are certain jobs that pay minimum wage. I worked plenty of them.
@EillieEs: People should be paid the value of their role. Sounds harsh but is this not a valid statement? 20K a year will see more automation and need for machines. Side note… A trainee accountant gets 22K per annum. A stop clerk gets min wage 20K per annum. Which is unfair? Both? Who creates more value? Both are needed but one is more skilled and trained. Yet only earns 2K more. Does this seem right? Note. Leaving living wage out of this as thats based on perspective… Ie where etc.
@Ryan Maher: you must be getting huge increases yourself then. If you get 2% more every year that works out to about the same more or less 5€ after taxes per week. The thing to note is that minimum wage workers don’t pay taxes, they can keep the full increase! That is what’s wrong in this country. 1/3 of all pay no taxes and if there is an incrwsee threshold to pay no taxes gets increased as well. ThIS is a slap in the face of everyone whi pays taxes
WOW! An extra 10 cent per hour, before tax. Yippee!
@Earth Traveller: and if I work non-stop and save that extra 10 cent per hour, I will a millionaire in the year 3161.
10 cents WOW 5 grand for themselves how generous
Always remember, our TDs earn about 10 grand more a year than MPs in Westminster
Wonder what people will do with that extra 4 quid
@Aidan O’ Neill: Spoken like a man not on minimum wage
I was on 10.20 already, I was proudly saying “at least my degree means I’m not on minimum wage”… but now I’m on the new minimum wage . College isn’t worth it kids
@Mark: Not in Ireland its not. No value in it here with the awful salaries. Better off doing a trade
Minimal compared to the increase in cost of living that the green party will impose on us.
@Ned Gerblansky: theres a minority of courses that should be scrapped all you are doing is keeping overpaid lecturers and support staff in a soft job. There is courses for everyone of all abilities but not jobs for all the people who sit the courses at the end
Any thoughts on all the taxes being raised carbon, electric PSO levy in regards to this pay rise 10 cent an hour disgraceful tbh imagine 140 percent increase in PSO because electricity companies can’t generate enough green energy shocked as to why we have to pay for an energy companies misgiving’s of course approved by government that charge increase alone will wipe out the 10 cent per hour give with one hand take back triple with the other.
But not many comments on super junior ministers getting €16000 a year rise on top of their €124000 salary. Lots of low earners don’t even get €16K a year.
@Stephen Kelly:
And OAPS are still waiting full restoration of 2008 entitlements prescription charges,, phone charges etc ???
Lovely €2 extra a week!!! Get in can stock up on my salted peanut collection now
@Ciarán McGrath: don’t be buying the fancy KP or Manhattan nuts, that’s reckless expenditure for us plebs
There will be no jobs.
Benefit from the increase?? Good lord… how can these people be so out of touch.
What a country we live in. People are like sheep when it comes to unaffordable housing, lack of public hospital beds, lack of private sector pensions etc, but somehow think an extra 10c to the lowest paid is bad for the country.
Won’t even cover increases in carbon taxes for workers driving to work. Minister for Social Protection Heather Humphreys is having a good laugh at low pay workers. Her travel allowance increases to offset carbon taxes.
This is such a joke. 10c an hr……. sure you’d find that down the back of the sofa.
@Colm Walsh: Yeah, but on that wage you couldn’t afford to buy a sofa in the first place.
Less than a 1% raise..
What’s inflation?
Pity there’ll be very few jobs left in January. Hospitality is gone. Local shops don’t stand much of a chance. NPHET are hell bent on level 5.
@Anne Marie Devlin: Very few jobs left? want to bet. Real work, otherwise known as essential occupations will still be there and for the most part poorly paid.
There are so many businesses who are contemplating whether to permanently close at the moment. 10 cent may not mean much to those who receive it but to the businesses that have to cough up additional money to pay their employees’ salaries may be the straw that breaks the camels back. The government should be focusing on providing financial supports to small businesses so that they can continue employing thousands of people as opposed to screwing small businesses even more.
@Jessy: There have been grants for small businesses. And this only affects employers who refuse to pay a living wage to their staff.
@Jessy: the only people being screwed are the people on minimum wage who don’t earn enough to afford a basic minimum standard of living.
@Jacqui Russell: The government has not been supportive of small businesses hence why so many businesses in the hospitality sector are crying out for support and being forced to permanently close. Small business owners are the ones who really are the risk takers as they risk everything to try keep their business afloat in these difficult times.
A pittance.
Woohoo!
That’s hilarious , how many will be working to avail of it .
God help Ireland
This has got to be a joke, 10cent increase. Not funny lady, 10 cent???
It’s €3.90 if you work a 39 hour week.
That’s some shower of F00Ker$ we have for a government,, Thanks Guys ..
Brilliant news
Confession. Just read the headline but for the second time on a Journal story I’m doing a Shane mc gown laugh!
have your say