Increase to minimum wage in Ireland

Today, the Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar announced increases to the National Minimum Wage and set a date for the Sick Leave Act to commence.

The Government accepted the recommendation of the Low Pay Commission to increase the National Minimum Wage to €11.30 per hour from 1 January 2023.Also announcing that the Low Pay Commission has set an indicative National Living Wage for 2023 of €13.10 per hour. 

This represents an 80 cents increase, or 7.6%, on the current National Minimum Wage of €10.50 per hour. For someone on the National Minimum Wage working a 39-hour week, this translates to a pay increase of €31.20 per week or more than €120 per month, or €1,600 per annum. 

National living wage

The Tánaiste also announced that the Low Pay Commission has set an indicative National Living Wage for 2023 of €13.10 per hour. The intention is to phase in the Living Wage between now and 2026 when it will become mandatory. In the meantime, it will be revised annually as a benchmark for employers. 

Sick leave

The Tánaiste also announced that he will commence the Sick Leave Act on 1st January 2023. This Act will, for the first time, introduce an entitlement for all employees to sick leave paid by their employer in addition to illness benefit from the State.

“Minimum wage workers are among the hardest working people in Ireland and deserve to be paid more, particularly at a time or rising prices,” said The Tánaiste.

“At least 164,700 people, and possibly more, are estimated to be in line for this increase, with many others on slightly higher pay levels also receiving a knock-on increase." 

“I hope that this increase, along with the other measures that will be announced as part of Budget 2023, will help to protect the lowest paid workers from the rising cost of living.  Our objective is to put more money in people’s pockets and reduce the cost of living.” 

The increase in the National Minimum Wage will also mean that those working under certain conditions, under the ages of 18, 19 and 20, will receive corresponding increases in their pay, as they are entitled to a percentage of the full minimum wage rate. The Tánaiste has asked the Low Pay Commission to examine youth rates and make recommendations on the issue next year.

The report of the Low Pay Commission in relation to the National Minimum Wage will be published later today.