GENERALLY, the amount of pay you get for working is agreed between you and your employer. Pay negotiations normally happen when you get a job offer.
However, most employees are entitled to a minimum wage under the National Minimum Wage Act 2000.
From January 1st 2025, the national minimum wage for people aged 20 and over will increase by 80c to €13.50 per hour.
If you are aged under 20 you may get sub-minimum rates.
The national minimum wage does not stop an employer from offering you a higher wage.
You cannot agree to be paid less than the minimum wage or to do unpaid work unless you are employed by a close family relative or are on a recognised apprenticeship.
Employees in certain sectors have other minimum rates of pay, for example, the security and cleaning sectors.
The rules for these sectors are set out in Employment agreements and orders made by Joint Labour Committees.
Even if the hourly pay rates are set out in an Employment Regulation Order (ERO), an employer must pay their employees at least the legal minimum wage.
What counts as pay?
For the minimum wage, your gross wage (your total pay before any money is deducted, such as tax or pension contributions) includes your normal basic pay, any shift premium, any fee, bonus, or commission, service charges given through the payroll, and zero hours payments.
If you get food (known as board) or accommodation (known as lodgings) from your employer, the following amounts are included in the minimum wage calculation:
• Board rates: €1.14 an hour
• Lodging rates: €30 a week or €4.28 a day
Employers must pay a minimum wage to work experience placements, work trials, internships and any other employment practice involving unpaid work or working for room and board.
How is my hourly rate calculated?
Your hourly rate is calculated by dividing your gross pay by the total number of hours you have worked.
However, it must be clear what pay is included, what hours are included as working hours, and whether you are paid weekly, fortnightly or monthly.
How are my Working hours calculated?
Your working hours are whichever is longer between:
• The number of hours set out in any contract, collective agreement, or statement of terms of employment, and
• The actual number of hours you worked or were available for work and get paid for
Your working hours include overtime and travel time where this is part of the job.
Time spent on training that your employer approved and during normal working hours, is also included.
Your working hours do not include the time you are:
• On standby other than at the workplace
• On leave, lay-off, strike, or after payment instead of notice
• Travelling to or from work
Pay reference period
Your employer selects the period, known as the pay reference period, to calculate the average hourly pay – for example, a week, fortnight, or month (but no longer than a month).
Your employer must include details of the pay reference period in your statement of employment conditions, as set out in the Terms of Employment (Information) Act.
You can ask your employer for a written statement of your average rate of pay for any pay reference period within the last 12 months.
The employer has four weeks to give you the statement.
What does not count as pay?
When calculating the minimum wage, do not include overtime, or weekend/public holiday premiums, or unsocial hours premium.
Allowances for special or additional duties, on call or standby are also not included; nor are tips or sick pay.
You are not entitled to get the national minimum wage if you are:
• Employed by a close relative (for example, a spouse, civil partner or parent)
• In a statutory apprenticeship
• Aged under 20
What are the current minimum rates of pay?
The national minimum wage for people aged 20 and over will increase by 80 cents to €13.50 per hour.
For age 19, it is €12.15. For age 18, it is €10.80. For under 18, it is €9.45.
What happens if my employer cannot pay me the minimum wage?
If your employer cannot afford to pay the minimum wage due to financial difficulty, the Labour Court can exempt them from paying the minimum wage rate for between three months and one year.
Only one exemption is allowed.
If you ask your employer to pay the minimum wage, you are protected by law from victimisation or dismissal.
If you are dismissed for asking for the minimum wage, you can bring a claim for unfair dismissal.
If you are due an increase under the National Minimum Wage Act, your employer may try to cut your working hours to avoid an increase in the overall cost of your pay.
However, they cannot do this without also reducing your duties or the amount of work.
How do I make a complaint if I do not receive the minimum wage?
Speak with your employer first.
If you cannot resolve the problem with your employer, you can complete the online complaint form on workplacerelations.ie.
This form gives you two options:
1. Request an investigation by an inspector from the Workplace Relations Commission (WRC).
The inspector will investigate your claim that the minimum wage is not being paid.
2. Refer a dispute to a WRC adjudicator.
However, you can only do this after asking your employer for a statement outlining the calculation of the average hourly pay.
You must refer the dispute within six months of getting the statement.
If necessary, the time limit can be extended to a maximum of 12 months.
Where your employer has not given you the statement, the time starts from the date they should have (that is, within four weeks of the request).
What is the Living wage for all?
A national living wage will replace the national minimum wage from 2026.
The living wage will be set at 60% of the median wage in any given year.
The national minimum wage will remain in place until the 60% living wage is fully phased in.
The national minimum wage will increase over the years as usual.
