The Minimum wage yoyo
The change in the minimum wage by one euro to €7.65 per hour which came into effect from February 1st has been reversed.
As and from 1st February it became legal to employ people at an hourly rate of €7.65 per hour. The rate reverts to the old rate of €8.65 with effect from 1st July.
These changes are not likely to have impacted on any people in existing employment as they will have been subject to existing terms and conditions of employment which would have provide for agreed wages and which could only be changed by agreement. Many categories of employees are also governed by Registered Employment Orders and Agreements which to date remain unaffected. These are now the subject of a major review. It is anticipated that they will be retained but in a revised format.
The reduction in the wage level was aimed at improving competitiveness and bringing Ireland more in line with wage levels throughout the European Union. Ireland currently has the second highest minimum wage in the EU. As part of the programme of incentives for job creation the employers rate of PRSI has reduced to effect lower paid workers..
For further information contact Catherine O’Connor of our employment division on email@example.com