Almost every worker in Ireland is entitled to the National Minimum Wage (NMW), and some employers also offer the higher rate Living Wage. In this article, you’ll learn what the minimum wage is, how it’s decided and how minimum wage affects workers depending on their age.
The current national minimum wage is €12.70 per hour, and it is set to increase to €13.50 in 2025
The rate you receive is determined by your age
You could still be taxed if you're on minimum wage
The NMW is the minimum wage per hour a worker is entitled to earn in Ireland by law. The minimum wage you receive depends on your age and the sector you work in.
The current Irish minimum wage, if you’re over the age of 20, is €12.70 per hour.
As part of Budget 2025, it was announced that minimum wage will increase to €13.50 per hour, effective from 1 January 2025.
The hourly rate a worker receives is determined by both their age and whether or not that worker is an apprentice. You’re only entitled to the NMW if you’re of school leaving age, which is 16.
The government sets the minimum wage rates, applying them to all employees. This includes those who work full-time, part-time, in a small start-up business and those completing essential training for their job. Currently, the rates for national minimum wage are as follows:
Your Age | Hourly minimum wage | % of minimum wage |
---|---|---|
20 and over | €12.70 | 100% |
19 | €11.43 | 90% |
18 | €10.16 | 80% |
Under 18 | €8.89 | 70% |
Yes. Minister Donohoe has announced that the 2025 minimum wage will increase by €0.80 per hour to €13.50 per hour.
Yes, you might still be taxed on your income even if you earn minimum wage, with different thresholds applicable based on how much you earn and whether you are single, married or in a civil partnership, or are widowed or a surviving civil partner.
It’s worth noting that some parts of your pay don’t count towards your minimum wage. This includes tips, overtime payments, a loan from your employer and a pay advance. Commission, on the other hand, is included. An employer can take certain deductions from your pay, but only for things such as tax, pension payments, trade union fees and any charges for accommodation they provide. An employer cannot use the cost of tools, uniforms, travel or training courses to reduce your pay.
A varying scale of minimum wage exists so that more people of various ages and experience levels can find employment. This was put in place by the government in light of evidence that younger workers were being priced out of jobs.
While younger workers usually receive lower wages than older workers, a couple of reasons for that might be because they often lack the experience and have a higher training cost than older and more experienced employees. Overall, the aim of minimum wage is to ensure a higher percentage of employment for younger people.
You may have seen the term 'basic pay' on your payslip. This is your basic salary, not including extra payments such as overtime.
The Living Wage is a guide, rather than a law, that employers can follow. The aim is to give all employees an income that reflects minimum living costs, which some people argue that minimum wage doesn’t do. The Living Wage is increased each year to reflect changes in the cost of living.
If you then find you’re able to save some of your wages, you could consider opening a savings account that would allow you to plan for your future. To quickly and easily open savings accounts online, consider using our marketplace. Register for a Raisin Account, deposit your savings for free, and watch them grow.