New minimum wage rate in Ireland 2025
Effective January 1, 2025, Ireland’s national minimum wage increased from €12.70 to €13.50 per hour. This change provides full-time minimum wage workers with an annual pay increase of approximately €1,424.
Who does this affect
This wage hike affects about 165,000 workers, notably in retail, hospitality, and services. Employers in these sectors must adjust payrolls to comply with the new rate. Furthermore,this adjustment may increase operational costs, impacting profit margins. Businesses should review budgets and consider price adjustments to offset these expenses.
Employment permit applications and minimum wage
The minimum wage increase also influences employment permit applications. The Department of Enterprise, Trade and Employment (DETE) has deferred most planned increases in minimum remuneration thresholds for employment permits, pending a review. However, the minimum annual remuneration for healthcare assistants and home carers will increase to €30,000 in January 2025. Therefore, employers hiring non-EEA nationals must ensure salaries meet or exceed these thresholds. Non-compliance can lead to permit application refusals.
labour market needs test
Additionally, the Labour Market Needs Test (LMNT) criteria have been updated. From January 17, 2025, roles requiring an LMNT must advertise salaries at or above the adjusted Minimum Annual Remuneration (MAR). Moreover, employers should ensure job advertisements reflect these new salary requirements to avoid application rejections.
Employers should stay informed about these changes to maintain compliance. Regularly reviewing official updates from DETE and consulting with employment law experts can help navigate these adjustments effectively. Employers and employees seeking to work in Ireland must stay informed of new changes. To stay abreast of new regulations go to Department of Enterprise website and review information on new regulations.
Furthermore, if you need to find out more about employment permits please contact Employment Permits Ireland for a free consultation. Call us on Tel: 00353 21603 6542 or email us on info@employmentpermitsireland.ie We are glad to help you as you find the right employee for your business.