Minimum Wage Increase

Minimum Wage Increase

 

The effective date 1st February 2020 has now passed and the new National Minimum Wage for employees in all age categories has been increased in accordance with the National Minimum Wage Act 2000.

For all employees over the age of 20, the National Minimum Wage is now €10.10 per hour.

The Employment (Miscellaneous Provisions) Act 2018 abolished training rates. Since 4th March 2019, trainee rates have ceased. Sub-minimum rates are now based solely on age, as shown below.

  • Aged under 18: €7.07 per hour (70%)
  • Aged 18: €8.08 per hour (80%)
  • Aged 19: €9.09 per hour (90%)

 

Alongside this, the Minister of Finance announced an increase, albeit a small increase to the USC 2% threshold. The increase takes the threshold up from €19,874 to €20,484. This uplift ensures full-time workers currently in receipt of the minimum wage will still not incur the 4.5% USC rate.

 

While this is not legislated until later in 2020, Revenue have confirmed to implement on an “administrative basis” for the 2020 tax year.

 

2020 USC Rates

 

INCOME BAND

RATE

€0 - €12,012

0.5%

€12,012 - €20,484

2%

€20,484 - €70,044

4.5%

€70,044 - balance

8%

Self -employed income over €100,000

11%

 

For those earning more than €20,484 per annum, they will see a small reduction in USC this year.

The maximum benefit per person is €15.25 per annum, or 29cent weekly.

 

Feel free to contact us here on (01) 8084191 for any questions you might have or how this might effect you or your employees.