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Library of Knowledge No. 44

The National Minimum Wage increased from 1 January 2021 this applies to most employees. It is the minimum hourly pay rate that must be paid. It applies to full-time, part-time, temporary and casual employees. However the following categories of employees are excluded:

• Employees who are close relatives of the employer, where the employer is a Sole Trader, such as a spouse, civil partner, parent, step-parent, grandparent, child, step-child, grandchild, sibling or half-sibling of the employer;
• A craft apprentice within the meaning of the Industrial Training Act, 1967, or the Labour of Services Act, 1987.

From 1 January 2021, the following rates apply:

Minimum rates of pay for other sectors

There are different minimum rates of pay for employees in other sectors which are set out in Sectoral Employment Orders (Construction Sector & Mechanical Engineering Building Services Contracting). Sector) and Employment Regulation Orders. (Contract Cleaning & Security Industry).

What can be included as pay for the National Minimum Wage (reckonable components) *

The following can be included to make up the national minimum wage

• normal basic pay
• shift allowances or other similar payments
• any fee, bonus or commission
• Zero Hours payments
• Board & Lodgings
• Service charge given through the payroll

What can’t be included for the National Minimum Wage (non reckonable components) *

The following payments cannot be included to make up the national minimum wage rate:

• any payment of expenses incurred by the employee in carrying out his/her employment
• Premiums including overtime, public holiday, Saturday, Sunday, unsocial hours or call out
• Allowances for special duties including a post of responsibility, on call or standby
• Tips or gratuities paid into a central fund and paid through the payroll
• any payment to the employee not made for their role as an employee
• any payment in kind or benefit in kind.
• any sum payable to an employee in lieu of notice of termination of employment.

*these are not full lists

For further information see https://www.workplacerelations.ie/en/what_you_should_know/hours-and-wages/national minimum wage/

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