With effect from the 1st of January 2018, Ireland’s new minimum wage for an adult worker is €9.55 an hour. This is a small boost of 3.2% on the previous minimum wage of €9.25. A 25 cent increase doesn’t seem like much but for full-time workers that equals an extra €12 per week. The Fianna Gael government increased the NMW in the budget based on advice from the Low Pay Commission in June 2017.
According to Eurostat, our minimum wage is the second highest in Europe but Ireland is also one of the most expensive countries to live in Europef. It can be argued that raising the NMW will cripple small Irish businesses making them less competitive. Others suggest the NMW needs to be increased further as it’s still 20% lower than the living wage. It’s a struggle for workers in Dublin trying to get by on such low salaries relative to basic living costs. It seems as if people would rather put up with crazy prices instead of moving outside Dublin. I think the government should focus on reducing the cost of living. Health insurance, car insurance and rent are rising faster than the rate of inflation putting extra pressure on low paid workers.
The New Minimum Hourly Rates are as follows:
- An experienced adult worker will earn €9.55.
- Over the age of 19 and less than two years since first job – €8.60.
- Over 18 and one year since they started their first job – €7.64.
- Under 18 take home – €6.69.
Example Scenario: A 19-year-old gets his first job on February 1st, 2018, they will receive €7.64 per hour. He/she won’t be entitled to make €9.55 until February 1st, 2020.
Despite the new regulations there still be will be unethical companies paying employee’s below the legal rates. Data collected by the CSO estimates that 10% of workers are illegally paid below €9.55.
What is the living wage?
The living wage is currently €11.70 per hour. According to the government, this is enough to maintain a good standard of living in Ireland for single individuals without children.
What Does an Experienced Adult Worker Mean?
An experienced adult worker is classified as someone who is over 18 with two years of employment.
Who do I contact if I’m paid below minimum wage?
If you think you’re being paid less than the legal requirement you can fill out an online complaint on workplacerelations.ie.
What is the Minimum Wage After Tax?
After paying income tax, USC and PRSI a single person working 39 hours each week will take home €18,258 for the year. Couples take-home pay after taxation is €19026.
The bottom line is if you want to increase your salary, you need to increase your skills and knowledge. No matter how bad things are, there are legitimate ways to make money online with just an internet connection and hard work.