The Government has approved plans to increase the minimum wage.
Minister for Social Protection, Heather Humphreys said Government has approved a 10 cent increase to the National Minimum Wage to €10.20 per hour from 1st January 2021.
It is estimated that around 122,000 people will benefit from the move.
Commenting on today’s decision, Minister Humphreys said: “Since 2016, the national minimum wage has increased from €8.65 per hour to its current rate of €10.10. Today, Government approved a further increase to €10.20 which will come into effect on 1st January 2021. This will benefit 122,000 low-paid workers.
The Minister said she also wants to ensure that the increase in the minimum wage does not result in employers having to pay a higher level of PRSI charge solely due to this increase."
“I will make regulations that will increase the employer PRSI threshold from €395 currently to €398 from 1st January 2021,” she said.
The Minister added: "The Low Pay Commission plays an important role in improving data collection on low paid and minimum wage workers and developing a strong research base on issues surrounding the minimum wage. I would like to thank the membership of the Commission for their work this year, as well as the work it has carried out since its foundation.”