Minimum wage to increase from January

Minimum wage to increase from January

The Government has approved plans to increase the minimum wage. 

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.”

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