On Wednesday 14th September 2022, the Cabinet approved an €0.80 rise to the minimum wage, bringing it to €11.30 per hour from January 1st, 2023 for employees aged 20 and above.
Why has the National Minimum Wage Increased?
The National Minimum Wage was last increased as part of the Budget 2022 from €10.20 to €10.50. Tánaiste Leo Varadkar said that the 80 cent rise to the minimum wage in 2023 is a step in eventually reaching the living wage threshold.
Mr Varadkar stated ‘It is actually the biggest increase we’ve ever had to the national minimum wage and it isn’t the only thing that we’re going to do for people on low pay’ and that ‘What it is all about is making sure that work pays, making sure that we reward work and making sure that there’s an incentive to work’. He confirmed the Budget 2023 will feature help with energy bills and increased welfare payments.
Will the National Minimum Wage Increase for all Age Groups in Employment?
Yes, the National Minimum Wage will increase for all age groups in employment. The table below states the updated Minimum Wage for each working age group.
| Age Group | Minimum Wage from January 1st 2023 |
| Aged 20 and Over | €11.30 |
| Aged 19 | €10.17 |
| Aged 18 | €9.04 |
| Aged Under 18 | €7.91 |
Will this 80 cent Increase in the National Minimum Wage make a Significant Difference?
This increase of the current minimum wage of €10.50 to €11.30 represents an 80 cent increase, and will see at least an estimated 164,700 people get a boost to their wages. For an employee on the National Minimum Wage working a 39-hour week, this translates to a pay increase of €31.20 per week or more than €120 per month, or €1,600 per annum.
However many trade union representatives have criticised the increase as it ‘simply doesn’t go far enough’ to aid employees. The Low Pay Commission, which recommended the increase in the minimum wage, has warned that the rise will not compensate workers for inflation and the increasing cost of living.
What is the Difference between the National Minimum Wage and National Living Wage?
The National Minimum Wage is the minimum wage that all employees are legally entitled to receive from their employer. Whereas, the National Living Wage is a calculated wage which is based on the concept that work should provide an adequate income to enable individuals to afford a socially acceptable standard of living.
The Tánaiste announced that the Low Pay Commission has set an indicative National Living Wage for 2023 of €13.10 per hour. The intention is to phase in the Living Wage between now and 2026 when it will become mandatory. In the meantime, it will be revised annually as a benchmark for employers.
