Ireland: Minimum Wages Announced for 2021

December 22, 2020 Lucy Halse

Key Points

  • Ireland will increase its minimum wages to EUR 10.20 on January 1, 2021
  • The change is a 1 percent increase in minimum salary levels
  • Changes affect Intra-Company Transferee (ICT) and Atypical Working Scheme (AWS) permits
  • General Employment Permits and Critical Skills Employment Permits are unaffected
  • All pending applications as of January 1, 2021 must comply with new minimum wage mandates
  • Allowances and benefits vary by permit for minimum wage calculations

Overview

Ireland will increase its minimum wages by 1 percent in 2021. Minimum wages nationwide will increase to EUR 10.20 per hour on January 1, 2021.

Who is Affected?

The change applies to Intra-Company Transferee (ICT) and Atypical Working Scheme (AWS) permits. However, it does not impact General Employment Permit or Critical Skills Employment Permit (CSEP) holders.

What Should Employers and Applicants Know?

Employers must compensate their employees in EUR, regardless of exchange rate fluctuations and the employee’s payroll location. Employers who want to receive or renew an ICT or AWS work authorization on or after January 1, 2021 must increase their foreign employee’s salary to comply with the new rule. Applications that do not meet the new minimum wage criteria will be denied. All AWS and ICT authorization applications that are pending as of January 1, 2021 must comply with the new salary requirements.

Employers should note that the inclusion of allowances and benefits varies by permit type.

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Content in this publication is not intended as legal advice, nor should it be relied on as such. For additional information on the issues discussed, consult an Envoy-affiliated attorney or another qualified professional.

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