Ireland – Employers Must Abide by Increase in Minimum Wage

Ireland – Employers Must Abide by Increase in Minimum

This GMS Flash Alert reports that the statutory minimum wage in Ireland has been raised from €8.65 per hour to €9.15 per hour, which has implications for employers in Ireland with employees coming to Ireland or working in Ireland with employment permits.

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Ireland’s statutory minimum wage has been raised from €8.65 per hour to €9.15 per hour.  This increase is effective from 1 January 2016. 

WHY THIS MATTERS

Global mobility advisers, immigration counsel, and globally mobile employees coming to Ireland need to be aware of the changes.  Minimum salary requirements have changed which need to be reflected in employees’ salary and pay slips. 

What Does This Development Mean?

The Employment Permits Regulations 2014 have been amended by the Employment Permits (Amendment) (No.2) Regulations 2015 to reflect the increase, under Ireland’s National Minimum Wage Order 2015, of the statutory minimum wage from €8.65 per hour to €9.15 per hour.

In order to be eligible to make an employment permit application when employers bring foreign workers into Ireland, the base salary, as the first component of the remuneration package, must achieve a minimum of these revised statutory rates as applicable. 

These revised rates will also apply to employment permits already in force.  As such, employers are required to increase the minimum base salary for employees from €8.65 per hour to €9.15 per hour where applicable. 

Failure to apply the revised statutory minimum wage requirements may lead to a prosecution against an employer and a refusal by the Department of Jobs, Enterprise and Innovation in the case of an employment permit renewal. 

CONTACTS

For additional information or assistance, please contact your local GMS or People Services professional* or one of the following immigration professionals with the KPMG International member firm in Ireland:

 

Aoife Newton

tel +353 1 700 4285

e-mail: aoife.newton@kpmg.ie 

 

Duncan Watson

tel. +353 1 410 2391

e-mail: duncan.watson@kpmg.ie

 

Nicola Booth

tel, +353 1 410 1355

e-mail: nicola.booth@kpmg.ie 

 

*  Please note that KPMG LLP (U.S.) does not provide immigration services. 

The information contained in this newsletter was submitted by the KPMG International member firm in Ireland.

© 2016 KPMG, an Irish partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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