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IRELAND – Minimum Salary Increases

Effective 1 January 2016, the statutory minimum wage in Ireland increased from €8.65 to €9.15 per hour, which equates to a new annual minimum salary of €18,556 per year (based on a 39 hour working week).

Who is affected?

This increase in the Irish minimum wage impacts the following categories of employment permit applicants current holders:

  1. Dependent/Partner/Spouse Employment Permit;
  2. Exchange/Internship/Reactivation/Sport and Cultural Employment Permits;
  3. Intra Company Transfer (ICT) and Contract for Services Employment Permits.

It is important to note that these revised rates apply equally to employment in respect of which employment permits are already in force.

What pay increases may be required for existing Employment Permit holders?

  • Existing Employment Permit holders with hourly pay rates on or below the previous minimum requirement must receive a pay increase from 1 January 2016;
  • ICT Employment Permit holders with a base annual salary (before allowances) below €18,556 must receive an increase to their base annual salary to bring them it to the new minimum salary no later than 1 January 2016.

Action Items

  • Ensure the salaries of all foreign national employees in Ireland meet the new annual minimum salary;
  • If necessary, increase the base salaries of existing Employment Pass holders to at least meet the new minimum salary.

This news alert was prepared using information provided by Corporate Care Relocation.

DISCLAIMER: The information contained in this immigration alert has been abridged from laws, court decisions, and administrative rulings and should not be construed or relied upon as legal advice. If you have specific questions regarding the applicability of this information, please contact Peregrine © 2017 Peregrine Immigration Management Ltd.