26 Jan 2022

Pay bump for workers as minimum wage set to rise in January 2022

Pay bump for workers as minimum wage set to rise in January 2022

Pay bump for workers as minimum wage set to rise in January 2022

Workers can expect a pay bump of 30 cent per hour in January 2022 as minimum wage is set to rise. 

The details of the new national rates were announced today (December 6th), with €10.50 set as the hourly rate for people in employment aged 20 and over. 

Workers under the age of 18 are entitled to €7.35 per hour, with €8.40 for 18-year-olds and €9.45 for 19-year-olds. 

For the purposes of the National Minimum Wage, gross wage includes (eg.) the basic salary and any shift premium, bonus or service charge. 

If you receive board or lodgings (food or accommodation from your employer), the maximum amounts that can be included are €0.94 per hour worked for board only and €24.81 per week or €3.55 per day for accommodation only. 

From January 1st 2022, employees who are close relatives of the employer (where the employer is a sole trader) are excluded from the National Minimum Wage.

This also applies to craft apprentices within the meaning of the Industrial Training Act 1967, or the Labour of Services Act 1987. 

The employer PRSI threshold will also increase in January from €398 to €410 to ensure the minimum wage increase does not result in a higher PRSI charge for employers. 

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