National Minimum Wage - Rate Increase 1st January 2016 by Payroll Department
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 employment.
The current National Minimum Wage rates that apply to certain categories of employees are listed in the table below, together with the new Rates outlined:
Employee
Current Minimum Hourly Rate of Pay
New Rates from 01/01/2016
Experienced Adult Worker
€8.65
€9.15
Under age 18
€6.06
€6.41
In the first year after the date of first employment over age 18, whether or not the employee changes employer during the year *
€6.92
€7.32
In the second year after the date of first employment over age 18, whether or not the employee changes employer during the year *
€7.79
€8.24
In a course of training or study over age 18, undertaken in normal working hours **
First 1/3rd period
€6.49
€6.86
Second 1/3rd period
€6.92
€7.32
Third 1/3rd period
€7.79
€8.24
NB - Each 1/3rd period must be at least 1 month and no longer than 12 months.
Experienced adult worker named by the Labour Court in granting a temporary exemption to an employer from paying the national minimum hourly rate of pay.
NB - The minimum period of temporary exemption is 3 months and the maximum period is 12 months.
Labour Court will decide the lower hourly rate of pay that the employee must be paid for the period of the temporary exemption.
* Employment experience prior to age 18 is not taken into account for these rates. ** Training must be as prescribed by the Minister in regulations.
Sundays
If not already included in the rate of pay, employees are generally entitled to a premium payment for Sunday working, or paid time off in lieu.
If you have any queries in relation to the above or indeed are interested in outsourcing the payroll function of your business contact us on 021 4641400 or email info@quintas.ie
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