On the 1st January 2021, the National Minimum Wage has increased to €10.20 per hour. Wages rates are based solely on age, with sub-minimum rates applying to persons under 20 years of age. See table below.
| Category of Employee | Minimum Hourly Rate of Pay | % of Minimum Wage |
| National Minimum Wage (aged 20 and over) | €10.20 | 100 |
| Aged 19 | €9.18 | 90 |
| Aged 18 | €8.16 | 80 |
| Aged under 18 | €7.14 | 70 |
| Trainee Rates abolished as of 4th March 2019 |
Employers should check their records and ensure they are compliant in their payment of the minimum wage, which can be calculated in accordance with Section 20 National Minimum Wage Act 2000.
Also, of note for employers is the increase in the employer PRSI threshold from €395 to €398, ensuring that employers will not have to pay a higher level of PRSI due to the minimum wage increase.
Given the current difficulties experienced by business due to Covid-19 pandemic, Section 41 of the National Minimum Wage Act, provides that employers who are in financial difficulties may on application to the Labour Court be exempt from paying certain entitlements – the details of which are outlined under the relevant Section.
Authors – Anne O’Connell & Ethna Dillon
29th January 2021
Anne O’Connell Solicitors
19-22 Lower Baggot Street, Dublin 2
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