On 6 October 2020 Minister for Social Protection, Heather Humphreys, secured Government approval to increase the National Minimum Wage to €10.20 per hour from 1 January 2021.

This represents a 10 cent increase on the current National Minimum Wage of €10.10 per hour. It is expected that this will benefit 122,000 low-paid workers.

Minister Humphreys also commented that her intention is to ensure that the increase in the minimum wage does not result in employers having to pay a higher level of PRSI charge solely due to this increase. The Minister confirmed she will make regulations that will increase the employer PRSI threshold from €395 currently to €398 from 1 January 2021.

Employers should take this update into account when planning for 2021 costs and to ensure compliance with minimum wage legislation.