Minister Regina Doherty announced that the minimum wage will increase to €10.10 from February 1, 2020.
The Irish system of minimum wages is based on age, with reducing rates for younger workers:
- Aged 20 or more: €10.10 per hour
- Aged 19 (90% of the adult rate): €9.09 per hour
- Aged 18 (80% of the adult rate): €8.08 per hour
- Aged under 18 (70% of the adult rate): €7.07 per hour
The increase is up 30 cents from the 2019 adult rate of €9.80.
At the same time, there will be an increase in the employers PRSI Class A higher tax rate threshold from €386 to €395.
The higher tax threshold is where the employers’ contribution increases from 8.8% to 11.05% of taxable income. This will reduce employers PRSI liability slightly. Although the benefit depends on whether staff are actually Class A and if they reach the upper threshold at all.
Download the advanced notice for budget 2020 here.