Following acceptance by the Government of the recommendation of the Low Pay Commission to increase the national minimum wage rate by 10c, the national minimum wage rate will increase from €10.10 to €10.20 on 1 January 2021.

From 1 January 2021 the following rates will apply:

•        Category of Employee                                        Hourly Rate
•        Aged 20 and above                                                €10.20
•        Under 18                                                              €7.14
•        Aged 18                                                                €8.16
•        Aged 19                                                                €9.18

The following categories of employees are excluded from the National Minimum Wage:

Employees who are close relatives of the Employer, where the Employer is a Sole Trader;

A craft apprentice within the meaning of the Industrial Training Act, 1967, or the Labour of Services Act, 1987.

For the purposes of the National Minimum Wage gross wage includes, for example, the basic salary and any shift premium, bonus or service charge.

Where an Employer provides board or lodgings the maximum amounts that can be included to make up the national minimum wage rate are:

•       for meals only €0.91, per hour worked
•       for accommodation only, €24.10 per week or €3.45 per day
•       from 1 January 2021.

In order to ensure that the increase in the minimum wage does not result in Employers attracting a higher level of PRSI charge solely due to this increase, the Employer PRSI threshold will increase from €395 to €398 from 1 January 2021.

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