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From 1 January 2018, the National Minimum Wage will increase by 30 cent to €9.55, with board and lodgings rates also increasing in line with the National Minimum Wage increase. Peninsula’s experts have collated a concise overview the new rates and how they apply to different categories of workers.

 

Rationale and Background to the Measure

At its meeting on 14 July last, the Government noted the contents of the Low Pay Commission’s Third Report, which includes a recommendation that the national minimum hourly rate of pay should be increased by 30 cent to €9.55 (Decision No. S180/20/10/2007).

It also noted the contents of the Commission’s Report on Board and Lodging Rates, which includes a recommendation that the method of calculation of the allowance for board should move from the current weekly/daily rate to an hourly rate.

As a consequence of the above Government decision, Minister Doherty signed an order on 11 October 2017 to increase the national minimum hourly rate to €9.55 and to change the method of calculation of the allowance for board, with effect from 1st January 2018.

 

Rates

From 1 January 2018, the National Minimum Wage hourly rate is €9.55.

 

The National Minimum Wage applies to all employees, including full-time, part-time, temporary and casual employees, except the following categories or employees who are excluded from its provisions:

  • Employees who are close relatives of the employer, such as a spouse, father, mother, son, daughter, brother or sister;
  • Employees undergoing structured training such as an apprenticeship (other than hairdressing apprenticeships).

 

For the purposes of the Act, the following payments are regarded as wages:

  • Normal basic pay, as well as any overtime
  • Shift allowances or other similar payments
  • Any fee, bonus or commission
  • Any holiday, sick or maternity pay
  • Any other return or payment for work (whether made under the contract of employment or otherwise),
  • Any sum payable to an employee in lieu of notice of termination of

 

The following payments are not regarded as wages:

  • Any payment of expenses incurred by the employee in carrying out his/her employment
  • Any payment by way of a pension, allowance or gratuity in connection with the death, retirement or resignation of the employee or as compensation for loss of office
  • Any payment referable to the employee’s redundancy
  • Any payment to the employee otherwise than in his/her capacity as an employee
  • Any payment in kind or benefit in

 

The allowance for Lodgings will be €22.56 per week or €3.24 per day and Board: €0.85 per hour worked.

 

The current (and previous) National Minimum Wage rates as they apply to certain categories of employees are listed in the table in the word document attached to this email (labelled ‘The National Minimum Wage 2018’).

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