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Irish Minimum Wage Increase

As and from 1st January 2016 the Irish Minimum Wage will be €9.15 per hour.

Introduced in the 2016 Budget, the Irish Minimum Wage was increased by 50 cent, leading it to increase from €8.65 per hour to €9.15 per hour, this was on the recommendation of the Low Pay Commission. This leads a minimum wage employee working 39 hours a week to be better off by €708 per year.  The Low Pay Commission is to look at increasing the minimum wage again in the 2017 Budget.

But what does this mean for your Company?

With an increase in minimum wage, this could possibly create a knock on effect for pay by the hour workers (such as supervisors etc..) requesting a pay rise, due to the fact they may only be 50 cent to 1 euro higher paid per hour than a minimum wage worker. This pay rise from €8.65 to €9.15 is just under a 6% pay increase, meaning that if you are to keep an equal and fair work environment you would have to pay increase your supervisor etc.. staff by a little under 6%.

With rents, insurance, energy and legal costs all increasing while the slack consumer demand has dictated that pricing and margins have reduced. This means that small businesses operating on increasingly tight margins cannot afford any more cost increases.  This will mean that that it could be a difficult adjustment for your company especially for labour-intensive sectors.

How can Athrú Solutions Help

At Athrú Solutions we can work out a plan that will ease through this difficult adjustment, this could include decreasing employees working hours, and delaying projects that through this adjustment will just not be financially advisable for your company.

 

If you wish to contact us please do so on

01 8900326 or email us on [email protected]