Guide to Minimum Wage for Employers in Ireland

What is the minimum wage in Ireland? Here's all the information you need to know if you run a small business.

Please note that this article is intended for educational purposes only and should not be deemed to be or used as legal, employment, or health & safety advice. For guidance or advice specific to your business, please consult with a qualified professional.

As an employer running a small business in Ireland, meeting the national minimum wage requirements is an important legal obligation.

This guide covers everything you need to know when it comes to hiring and retaining employees in Ireland, including the minimum wage for each employee category, its importance, how to calculate it, and any exemptions. It also examines the living wage in Ireland and how it differs from the national minimum.

What is the national minimum wage?

The national minimum wage is a legal requirement that all employers must meet. It sets out the hourly wage that you must pay each of your employees, depending on which age category they fall in.
The rate can change annually and has increased in 2021. This minimum wage exists to protect workers in the labour force and helps to create a minimum standard of living.

What is the national minimum wage in Ireland?

The national minimum wage in Ireland is the lowest amount employers can legally pay their employees. As of January 1, 2024, the Irish minimum wage has increased, and the current rates are as follows:

  • Employees aged 20 and over: €12.70 per hour
  • Employees aged 19: €11.43 per hour
  • Employees aged 18: €10.16 per hour
  • Employees under 18: €9.00 per hour

These figures represent gross pay, which includes an employee’s basic salary and any applicable bonuses or shift premiums. If your business provides accommodation or meals for employees, allowances can be made: €3.45 per day for accommodation and €0.91 per hour worked for meals.

These figures represent gross pay, which includes an employee’s basic salary and any applicable bonuses or shift premiums. If your business provides accommodation or meals for employees, allowances can be made: €3.45 per day for accommodation and €0.91 per hour worked for meals.

The minimum wage in Ireland is reviewed annually based on recommendations from the Low Pay Commission. New rates are typically announced in October and come into effect the following January.

What is the difference between the national minimum wage and the living wage in Ireland?

The national minimum wage is a legal requirement, whereas the living wage in Ireland is an estimated hourly rate needed for a basic standard of living. As of 2024, the living wage is calculated at €14.80 per hour. This figure is not legally mandated but represents the income necessary for essentials such as housing, food, and healthcare.

While businesses in Ireland are only required to pay the minimum wage, many opt to pay the living wage to support their employees and improve retention. Paying the living wage can also help workers avoid reliance on social welfare programs, leading to greater job satisfaction.

Dublin minimum wage: Is there a difference?

While there is no separate Dublin minimum wage set by law, the cost of living in Dublin is significantly higher than in other parts of Ireland. This makes the living wage concept particularly relevant for employers in Dublin, where paying higher wages may be necessary to attract and retain employees.

Why is the minimum wage important for small business owners?

As an employer, complying with minimum wage Ireland laws is not just about legality—it’s about maintaining a productive and motivated workforce. Employees who feel fairly compensated are likelier to be engaged and perform well.

Failing to comply with Irish minimum wage legislation can result in fines and investigations by the Workplace Relations Commission (WRC). Employees who suspect they are being underpaid can file a complaint, which the WRC has the authority to investigate and enforce.

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Are there any exceptions to the minimum wage law?

Certain exceptions to the minimum wage Ireland law apply. These include:

  • Close relatives of the employer, such as spouses, parents, children, or siblings, if the employer is a sole trader.
  • Craft apprentices are governed by separate regulations under the Industrial Training Act 1967 or the Labour Services Act 1987. Common apprenticeships in Ireland include plumbing, carpenters, mechanics, and chefs.

How to manage your payroll and plan for changes

Accurate payroll management is essential for ensuring compliance with wage regulations. Using payroll software, such as Square’s Advanced Access, helps you stay organised and efficient. Advanced Access allows you to:

  • Create accurate time cards to track hours worked.
  • Ensure compliance with wage laws for all employee categories.
  • Easily identify and resolve discrepancies between scheduled and actual hours worked.

Using a reliable tool like Advanced Access streamlines wage compliance reduces administrative burdens, and strengthens your business by ensuring employees are paid correctly.

Staying compliant with the minimum wage in Ireland isn’t just about avoiding penalties—it’s an opportunity to build trust with your workforce. By adapting to wage increases in line with the cost of living, forward-thinking businesses can use this as a motivator to improve employee retention and workplace culture.