National Minimum Wage 2022

The National Minimum Wage (NMW) applies to most employees. It is the minimum hourly pay rate that must be paid. It applies to full-time, part-time, temporary, casual employees and seasonal workers.

The national minimum hourly rate became €10.50 on 1 January 2022. The full rate applies to experienced adult workers. There are three sub-minimum rates that allow for the relatively poorer productivity of young, inexperienced employees. These are:

• Aged 19 - €9.45 (90% of NMW)
• Aged 18 - €8.40 (80% of NMW)
• Under 18s - €7.35 (70% of NMW)

From January 2022, the following categories of employees are excluded from the NMW:

• Employees who are close relatives of the employer, where the employer is a Sole Trader, such as a spouse, civil partner, parent, stepparent, grandparent, child, stepchild, 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.

Since 4 March 2019 trainee rates have been abolished. For the purposes of the NMW your gross wage includes, for example, the basic salary and any shift premium, bonus or service charge. If you receive board or lodgings, that is food or accommodation from your employer, the maximum amounts that can be included are:

• for board only €0.94 per hour worked
• for accommodation only €24.81 per week or €3.55 per day

The following payments (list is not exhaustive) 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, 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

See here for information on National Minimum Wage. If you have a query on the National Minimum Wage, please visit our Pay and Benefits section of the website or contact Emma at SFA on 01 605 1668 / emma.crowley@sfa.ie