The National Minimum Wage is expected to increase again on 1st January, 2024. The Low Pay Commission is recommending that it is increased by over 12%. This increase will need to be approved by Cabinet in the autumn, and would increase the National Minimum Wage by €1.40 an hour, bringing it up from €11.30 to €12.70 per hour. This would mean that those who work 39 hours a week on the minimum wage would earn an additional €54.60 per week in 2024. 

This increase would be a step in the government’s strategy to ditch the National Minimum Wage in favour of a new living wage rate by 2026. A living wage is the minimum hourly wage that a worker needs to ensure a decent standard of living and financial stability. According to the Tánaiste, it'll be set at 60% of the median hourly wage each year. 

What does the living wage mean for business owners? 

The plan is to bridge the gap between now and 2026 with gradual increases, but this could change depending on economic circumstances. There is concern that if it’s brought in too quickly, some businesses could close, or employee hours could get cut. We’ve already seen the minimum wage jump from €10.50 last year to €11.30 at the start of this year for those aged 20 and over. 

Here’s a list of the other current rates (as of 1st of January 2023):

This is just one of many new schemes the government is implementing to improve worker’s rights. Some others include the Statutory Sick Pay scheme that was introduced this year, and Auto Enrolment into pension schemes come 2024. If you’d like to learn more about these, check out two of our most popular webinars and guides on these topics below.

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