The minimum wage is going up in January 2021

The Minimum Wage in the Republic of Ireland is going up on 1 January 2021 - as announced here.

What does this mean

The minimum adult hourly rate is increasing by 10c to €10.20 per hour.  It applies to  everyone who is age 18 or more, except apprentices, family members of employers, and people who work for companies that have a Labour Court exemption..

• For people aged 19 the minimum hourly rate is 90% of the adult rate, so it becomes €9.18 per hour.

• People aged 18  is 80% of the adult rate, so it becomes €8.16 per hour.

• People aged less than 18:  for them, the minimum hourly rate is 70% of the adult rate, so it becomes €7.14 per hour.

This hourly rate is before tax, and it does not include tips, extra that you get for working overtime or at unusual times, pension contributions - if any of these apply, they must be paid on top of the minimum wage.   For example, if you are age 21 work for three hours, and your share of tips from the day is $20, then you must be paid at least  ( 3 x 10.20 ) + 20  = 30.60 + 20,   ie  $50.60

Do you have to be paid the minimum wage?

The law says that you must be paid at least the minimum wage, based on your age.

Employers can choose to pay you more than this, and  many employers do pay more than the minimum wage.

Minimum wage vs Living Wage

There are been recent news items about introducing a Living Wage in Ireland, with suggestions that the minimum wage should increase to $12.30 per hour.  

Recently the Taoiseach (Ireland's Prime Minister or top government leader) said that the government would "examine the introduction of a statutory living wage".  This means that they will think about it, but they have not made any promises yet.   

Some of the things to think about include how many hours people work for:  the Living Wage is calculated based on what it costs an adult to live in Ireland in a certain way, and assumes that you work for 39 hours per week.   But some employees choose to work less than full-time hours, and some jobs are never going to be full time.

Will everyone else's wages also increase?

Increases to the minimum wage doesn't apply to people who are already paid more - unless they have a contract which says  so, for example "Your hourly pay rate is the minimum wage plus 50c".

Sometimes other low-wage jobs do have wage increases at the same time  as the minimum wage increases, so they are still attractive to people who are looking for work.   However the Covid-19 crisis means this is less likely in 2021.

What to do if you are being paid less than the minimum wage

See what to do if you aren't being treated the right way at work for some suggestions.

Disclaimer

As always, this isn't legal advice.  Consult a lawyer if you need advice about a specific situation.

Minimum wage going up in February 2020

The Minimum Wage in Ireland is going up on 1 February 2020 - as announced here.

The minimum adult hourly rate is increasing by 30c to €10.10 per hour.  It applies to  everyone who is age 18 or more (except apprentices and family members of employers).

• For people aged 19 the minimum hourly rate is 90% of the adult rate, so it becomes €9.09 per hour.

• People aged 18  is 80% of the adult rate, so it becomes €8.08per hour.

• People aged less than 18:  for them, the minimum hourly rate is 70% of the adult rate, so it becomes €7.07per hour.

Do you have to be paid the minimum wage?

The law says that you must be paid at least the minimum wage, based on your age.

Employers can choose to pay you more than this, and  many employers do pay more than the minimum wage.

Will everyone else's wages also increase?

Increases to the minimum wage doesn't apply to people who are already paid more - unless they have a contract which says they are linked   eg  "Your hourly pay rate is the minimum wage plus 50c".

But  it is likely that other low-wage jobs will have wage increases, so they are still attractive to people who are looking for work.

What to do if you are being paid less than the minimum wage

See what to do if you aren't being treated the right way at work for some suggestions.

Disclaimer

As always, this isn't legal advice.  Consult a lawyer if you need advice about a specific situation.

What to do when you aren't being treated the right way at work

Sometimes, things won't be right at work:  Employers don’t always follow laws.  You may be paid late, or your tax may not be wrong.  Other staff may be rude to you, or even hurt you.   You might be asked to do something unsafe, or illegal - or which you believe is wrong. 

There is no "right answer" about what to do when things like this happen. 

The list below has some suggestions about what you could do.   You need to decide what you will do, after thinking about:

• What is going on
• How much of a problem it is
• What your employer will do if you complain, and
• What other options you have.

Find out more

Often you need to start by finding out more about about the laws which apply:

• If you think that your employer is paying less than the minimum wage, then you need to check if an exemption applies. So look up your employment contract, and the detailed rules from Workplace Relations.

• If you are concerned about a health and safety issue, read the industry information provided by the HSA.

• If your colleagues are treating you badly, this may be bullying - read here.

• If you are pregnant  read here.

(These links are all for Ireland.  Many countries have similar laws.  Try googling "employment law" with your country-name to find informaiton for other places).

Knowing about the laws is helpful.  But some people don't mind breaking the law.   So you may also want to talk to your colleagues, or people who work in similar jobs to find out how things are for them. 

Or you could ask a question on a discussion forum like Boards.ie or AskAboutMoney.  (Your manager etc might read these too, so change some details so it's not obvious who is posting).

Also, think about what the consequences of an doing something about the problem might be.   Many employers will fix issues when you tell them   But some might just cut your hours or even fire you.

Decide what to do next

After you have the facts, you need to think about what to do next. 

Talk to your employer

Many employers are happy to fix problems without anyone else involved:  you just need to talk to them, and tell them what what is wrong. 

This doesn't always work.  But when it does, it is the fastest way of fixing problems, and it means that you and your employer will still get on well.

Involve the union

If you are a trade-union member, then a union delegate or staff member may be able to convince your employer to do the right thing. 

Unions can also give you information about "taking industrial action":  this means doing other things  like going on strike, or working-to-rule.   Often things like this aren't an option in places where jobs are advertised in shop-windows.   But it can be useful to tlak to the union about their experiences with your employer.

Workplace Relations

In Ireland the Workplace Relations Commission is a government agency that helps to protect employees' rights.

• You can ask them a general question using this form or by phoning 059 9178990  / Lo-call: 1890 80 80 90 during office hours.
• Find out about making a formal complaint to them is on this page.

Health and Safety Authority

In Ireland the Health and Safety Authority is a government agency that is responsible for making sure people are protected from work related injury and ill-health.

You can ask them a question or make a complaint using this form or by phoning their Workplace Contact Unit on  +353 1 614 7000 / Lo-call: 1890 289 389 between 9:00am and 12:30pm, Monday to Friday, or email them at wcu@hsa.ie

Do nothing - or find a better job

If your employer is treating you badly, or deliberately breaking the law, then it's probably not a great place to work.  Some people say that you should fight to get the problems fixed.  But others say that it's best to just find a better job, and that the best way to punish a bad employer is for no one to be willing to work for them.

Or, especially if you are leaving soon anyway,  you might just put up with how things are, knowing that  it's not for long.

Working cash-in-hand in Ireland

When you are looking for a job, some people may ask you to work “cash in hand” or “under the table”.

This means that they will pay you in cash, not through a bank account.   Also, they won't deduct any tax, and usually will not give you a pay-slip, either.

At first, this sounds great:   you know exactly what you will earn, and everyone wants to pay less tax!

There are times when it’s the only practical way to work - for example, if you are using your own lawnmower to cut lawns, you only see each “employer” once a month for half an hour, they can ring up and cancel at any time, and you can do the work when you're ready (within reason) . But most jobs aren’t like this.

But there are some reasons why it's not-so-great too:   Before you agree to work “cash in hand”, you should understand what it means for your tax, welfare and employment rights.

Problems with working cash-in-hand

It’s against the law

The law in Ireland says that anyone who employs a person must:

• Deduct tax from their wages and send this to the tax-department (who are called “Revenue”), and
• Pay employer’s tax (called Employer-PRSI).

There are times when an employer doesn’t need to do this is if the job doesn’t meet Revenue’s “employee test”.  You can read about the "is this person an employee" test here, but.in short, if you are working:

• in someone's building, 
• at times they say, 
• using their equipment 
• being supervised by them 

then you are most likely are an employee, and your employer needs to be looking after the tax.

If you are working for someone and they don’t deduct tax and pay PRSI, then they are breaking the law. If Revenue find out about it, then they can be fined.

The law also says that you need to tell the Revenue any money you earn, and to pay the tax you owe on this. Most people don’t need to do anything about this, because their employers do it for them.

But if you work for an employer who isn’t sending your tax-deductions to Revenue, then you are responsible for telling them (this is called "declaring your income") and paying the tax. If you don’t do this, then you are breaking the law. And if Revenue find out about it later, then they may charge you a fine.

You won’t get social welfare

The second big problem with working under the table is that it can stop you being eligible to get social welfare.

The tax that is paid by workers and employers in Ireland includes Pay Related Social Insurance (PRSI).

For each week that you earn money and pay tax, you also earn one “PRSI Credit”.   (Some people call these “stamps”).

If you have enough PRSI-Credits, then:

• If you lose your job, you can get Jobseekers Benefit
• If you get sick, you can get Illness Benefit
• If you have a baby, you can get Maternity Benefit
• When you are old, you can get State Pension
• and some other social-welfare benefits too

If any of these things happen, and you don't have enough PRSI credits, then you don't automatically get any welfare benefit.    You might be able to get some other social-welfare allowances, but they are a lot harder to get. And if your employer won’t give you a letter saying you were working there - so you won’t be able to prove you lost your job, which means you may not even get Jobseekers Allowance.

It may be impossible to get your other employment rights

Ireland has laws about your rights at work. These are about things like minimum wage, hours of work, being paid for the hours you work, jury duty, maternity leave, health and safety, equality, etc.

If your employer is breaking these laws, then you can ask the government to make them treat you correctly.

But if you are working cash-in-hand, then your employer can say that you don’t work for them at all - and you can’t prove that you do.

In the same way, if you have an accident at work and your employer says that it’s your fault because you were trespassing - you can’t prove that you were supposed to be there.

What do do

If someone asks you to work cash-in-hand or under-the-table, then you need to weigh up the costs and benefits, and decide if it’s worth taking the risk.

In Ireland, people who earn under approx €18,000 in a year don’t have to pay very much tax anyway, - so some decide that for the amount of tax they save, it's just not worth the risk.

If you do decide to take do it for short time, then make sure you don’t stay in the job for long: The longer you stay there, the more time you are not earning “stamps” and so the more chance you will have a big problem if company eventually closes - or even several years later.

And, of course, either way you should make sure that you are declaring your income to Revenue, and paying the right amount of tax.

Note:  the Staff-Wanted network are not lawyers or accountants.  This is very simple description of the issues   If you need legal or tax advice, please consult a professional.

Changes to employment laws in Ireland in March 2019

Some new laws about employee rights apply from 4 March 2019 - thanks to the Employment (Miscellaneous Provisions) Act 2018,

This is a plain English list of the main changes.

If you need more information, see a full explanation of the changes here.

Please note:  the Staff-Wanted network aren’t lawyers - and this is very simple description of the changes.   If you think there is a problem with these new laws and your job, then you need to check the details with a lawyer: do NOT rely on this article.)

What does the new law say

Most of the changes are for people who work part time, temporary or casual jobs - exactly the ones that are listed on Staff-Wanted.

Very roughly:

• You must get a written contract within  five days
• Zero hours contracts aren't allowed  (but there are exceptions)
• If you're called, you should get at least three hours pay
• If you work more hours than you contact says for 12 months, then your should be changed.
• Minimum wage is basedon your age, not working time after age 18.

Read on for more details about how these rules will work.

The minimum wage is going up on 1 January 2019

The Minimum Wage in Ireland is going up on 1 January 2019.

The minimum adult hourly rate is increasing by 25c to €9.80 per hour.  It applies to  everyone who does not fit into these categories:

• People aged 19+ and who have worked(*) for less than two years since they turned 18:  For them, the minimum hourly rate is 90% of the adult rate, so it becomes €8.82 per hour.

• People aged 18+  and who have worked(*) for less than one year since they turned 18:  For them, the minimum hourly rate is 80% of the adult rate, so it becomes €7.84 per hour.

• People aged less than 18:  for them, the minimum hourly rate is 70% of the adult rate, so it becomes €6.86 per hour.

(*)  Any paid work after turning 18 counts:   It doesn't need to be full time, or in the same industry.  These rules are set out in the National Minimum Wage Act 2000, which is a law passed by the Irish government.   If you think that parts of this law are unfair - for example, that work experience before you turn 18 is not counted - then you should discuss this with your local TD, or political party.

Do you have to be paid the minimum wage?

The law says that you must be paid at least the minimum wage.   Employers can choose to pay you more than this - even if you are under 18 or have not been working for very long.   Many employers do pay more than the minimum wage.

Will everyone else's wages also increase?

An increase to the minimum wage doesn't apply to people who are being paid a higher rate - unless they have a contract which says they are linked   eg  "Your hourly pay rate is the minimum wage plus 50c".

However over time, it is likely that other low-wage jobs will have wage increases, so they are still attractive to people who are looking for work.

What to do if you are being paid less than the minimum wage

If  you are getting less than the minimum wage, then the first thing to do is to check:

• Is there any exemption for your job (eg for trainees, apprentices, or employers in financial difficulty), or
• It is because of the way your hourly rate is calculated.   (In some jobs, there are allowances or particular times that are or aren't included).

You can find more details about this here on the Citizen's Information website.

If you are not being paid correctly, you can choose what to do next.   Some options are:

Talk to your employer

Sometimes employers make mistakes, don't know about the increased rates, or the amount of work experience that you have.   It is usually best to ask them about the problem first and give them a chance to fix the problem, before getting anyone else involved.

Talk to your union

If you belong to a union, then a union delegate or staff member can talk to your employer about the minimum wage rate, and how it applies to you.   They will also know if your employer regularly pays people less than they should, and what to do about it.

Talk to Workplace Relations

The Workplace Relations Commission is a government agency that helps to protect employees' rights. They can investigate and may do various things to help convince your employer to pay you correctly - anything from a gentle reminder letter or phone-call, right through to a full audit of your workplace and/or taking your employer to court.

• You can ask them a general question using this form or by phoning 059 9178990  / Lo-call: 1890 80 80 90 during office hours.
• Find out about making a formal complaint to them is on this page.

Do nothing - or find a better job

If someone is paying you less than the minimum-wage, then they are breaking the law.

f they keep doing it, even after they know about the law, then probably it's not a great place to be working:  Many people would say that you should focus on finding a better job, with an employer who is not going to behave like this.

Disclaimer

As always, this isn't legal advice.