December 01, 2022
The Government has announced that the National Living Wage is to replace the National Minimum Wage by 2026.
It has been agreed that the National Living Wage will be set at 60% of the national hourly median wage and will be phased in over a four-year period. From 2026, the Minimum Wage will no longer exist.
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. In 2023, it is estimated that 60% of median earnings would equate to approximately €13.10 per hour.
However, given the increased cost of living, the Living Wage Technical Group has said that it should now rise to €13.85 per hour.
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 increasing the rate from 60% to 66% of the median rate.