6th January 2023
As we kick off 2023, the New Year brings with it many important HR and Employment Law Updates that came into effect from the 1st of January 2023 such as changes to the National Minimum Wage and the introduction of Statutory Sick Pay. It can be a challenge for Irish businesses to stay up to date with all the latest changes, but it is essential that we meet our obligations to employees and stay compliant with changes to the employment law landscape.
What is the new National Minimum Wage in Ireland?
The 2023 Budget that was set out by the Government way back in September 2022, sees a number of measures coming into effect at the start of this year including an increase to The National Minimum Wage.
As of January 1st, 2023, The National Minimum Wage has seen a 7.6% increase from €10.50 to €11.30 per hour and is expected to boost the wages of around 164,700 people across Ireland. For an Employee earning the National Minimum Wage working a 39-hour week, this will result in a pay increase of €31.20 per week or more than €120 per month, or €1,600 per annum.
Rates effective January 1, 2023
| Effective 1 January 2023, the following rates apply: |
| National Minimum Wage (20+) |
€11.30 |
| 19 years old |
€10.17 |
| 18 years old |
€9.04 |
| Under 18 |
€7.91 |
Will the minimum wage in Ireland continue to rise?
Expect to see further phased changes to the minimum wage from 2024-2026, as the Government agreed to the introduction of a new national "living wage" to replace the minimum wage by 2026.
Irish businesses and employers will need to prepare for these updates and consider both the financial impact and the necessary contractual updates required to stay compliant with new legislation.
What are employees’ Sick Pay entitlements?
Another big change that has come into force this month is new Sick Pay entitlements for workers. We covered this in detail in our latest January Newsletter. The government has also issued a press release reminding employers that a new entitlement to employer-paid sick leave has come into effect as of the 1st of January 2023.
The Sick Leave Act legislates for a statutory sick pay scheme for all employees in Ireland, phased in over a four-year period.
Can employees now request the right to remote work?
Back in November 2022, the legislative Right to Request Remote Work was integrated into the Work Life Balance and Miscellaneous Provisions Bill, with the expectation from the Department of Enterprise, Trade and Employment, that the bill would be delivered by the end of 2022. However, here we are at the beginning of January awaiting an update, it seems the eagerly anticipated Work Life Balance and Miscellaneous Provisions Bill has stalled. Some media reports suggest that the legislation will not likely come into effect until the summer of 2023. There are many expected provisions in the Bill that will impact employers in Ireland, which we outlined in our December update available here. At Adare Human Resource Management we will continue to track the progress of the Bill and implementation timeline so we can best support businesses to be ready and compliant.
As always if you have any questions or concerns about these changes and how they impact your business please contact our experts in Adare Human Resource Management on 01 561 3594 / 061 363 805 or email info@adarehrm.ie.