The Government has announced the introduction of a new national Living Wage to replace the national Minimum Wage by 2026. The Living Wage is defined as the minimum amount people need to live and take part in Irish Society.
It has been agreed that the National Living Wage will be set at 60% of the hourly median wage and will be phased in over a four-year period. From 2026, the Minimum Wage will no longer exist.
It is estimated that the National Living Wage would be €13.10 per hour in 2023.
From 1st January 2023, the Minimum Wage is increasing to €11.30 per hour and this will continue to increase over the timeframe until it reaches 60% of the hourly median wage.
Once fully introduced, the National Living Wage will be assessed, and it is expected that the Low Pay Commission will advise on the practicalities of gradually increasing the targeted threshold rate towards 66% of the hourly median wage.