As a result of amendments to the National Minimum Wage Act 2000, the criteria for sub minima rates as applied in the Act have changed.
The sole qualifying criteria is the age of the worker, not the length of time that they have worked or when they first entered the work force.
From March 4th – the rates are as follows:
- 70% of the NMW (currently €9.80, therefore €6.86) for those who have not attained the age of 18 years
- 80% of the NMW (currently €9.80, therefore €7.84) for employees who are 18 years old
- 90% of the NMW (currently €9.80, therefore €8.82) for employees who are 19 years old
- All workers that are 20 years or older are entitled, by law to the NMW rate of €9.80
It is your responsibility to ensure that your employees are being paid the correct rates of pay. You can do that by ensuring that you have a date of birth included in their payroll details and that your payroll provider/software has the ability to alert you to changes to the age (birthday) of an employee transitioning from 17 to 18, 18 to 19 or 19 to 20.
Inspectors from the WRC will be checking that any employees on sub minima rates are on the correct band for their age. They are empowered to order repayments not only to your existing staff but to any staff previously on your payroll that had left.
NOW IS THE TIME TO ENSURE THAT YOUR STAFFS’ DETAILS ARE CORRECT AND THAT THEIR WAGE RATE IS THE APPROPRIATE ONE FOR THEIR AGE IF YOU PAY NMW RATES
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