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IMPACT – MEDIUM
What is the change? Ireland has increased its minimum wage 3 percent from €9.25 per hour to €9.55 per hour.
What does the change mean? The change could affect the wages paid to workers in several work permit categories, including those working on Atypical Working Scheme (AWS) visas, dependents or interns on employment visas and, in some cases, those working on intracompany transfer (ICT) permits or Contract for Services permits.
Background: All employment in Ireland must comply with the National Minimum Wage Act, with the exception of certain employment of people under the age of 18 or people employed pursuant to Employment Regulation Orders and registered employment agreements. Employers should be sure to raise salaries to meet the new minimum wage. ICTs and Contract for Services permits allow employers to count certain allowances, such as housing or health insurance, toward meeting the minimum salary threshold required for the visa category. Employers should adjust the base remuneration to meet the higher national minimum wage before adding the allowances.
BAL Analysis: Companies should identify employees and assignees whose salaries require adjustment and make the appropriate increases to meet the new statutory minimum wage.
This alert has been provided by the BAL Global Practice group. For additional information, please contact ireland@bal.com.
Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
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