The minimum wage in Ireland and what employers must know
Reviewed by Mellow Editorial Team, HR & payroll content team
The national minimum wage in Ireland for 2026 is €13.50 per hour. This rate applies to most adult employees aged 20 and over, and employers must pay at least this amount for every hour worked — including overtime hours calculated at the base rate before any premium is applied.
Who the minimum wage applies to
The national minimum wage covers the vast majority of employees working in Ireland. A small number of sub-minimum rates exist for younger workers and those in structured training, though these have been narrowed over recent years as policy has moved toward a single adult rate.
Rates for workers under 20 are set as a percentage of the adult rate. Employers should check the current approved percentages with the Workplace Relations Commission (WRC) rather than relying on older published figures, as these sub-rates are reviewed periodically.
Some workers are excluded entirely — for example, close family members employed by a relative, or certain apprentices covered by separate statutory instruments. If you are unsure whether a particular worker is covered, the WRC website is the authoritative source.
Sector-specific Employment Regulation Orders (EROs) can set higher minimum rates in certain industries, including hospitality and contract cleaning. If an ERO applies to your sector, it overrides the national minimum wage — the floor is whatever is higher.
Calculating what counts as pay
Not everything you pay an employee counts toward the minimum wage calculation. Revenue from tips and gratuities paid through a tronc does not count. Board and lodging can be counted, but only up to prescribed limits set by legislation — you cannot offset more than the statutory maximum even if you provide accommodation worth more than that.
Payments that do count include basic wages, shift premiums, and most bonuses. Payments that do not count include overtime premiums above the basic rate, call-out allowances, and unsocial hours payments above the standard rate.
The calculation is based on working hours in a pay reference period, which is typically one week or one month depending on how you run your payroll. If an employee's total eligible pay for that period, divided by hours worked, falls below €13.50, you have an underpayment — regardless of how other weeks look.
Payroll and tax implications
Meeting the minimum wage is a legal floor, but it also triggers real payroll obligations. Every payment must be processed through your real-time payroll system, with submissions to Revenue via ROS on or before each payday.
At €13.50 per hour, a full-time employee working 39 hours a week earns roughly €27,300 annually. That sits well within the standard income tax band, so the employee pays tax at 20% on income above their tax credits — Ireland does not use a personal allowance system. USC is also deducted in bands starting at 0.5%, rising to 2% and 3% depending on earnings. For this income level, the 8% USC rate does not apply.
As the employer, you pay PRSI at approximately 11.15% on top of gross wages under Class A. Employee PRSI sits at around 4.1%. These contributions are due with every payroll run, not quarterly or annually.
If you are bringing on minimum wage employees as part of a growing workforce, factor employer PRSI into your true cost of employment — for a full-time minimum wage worker, that adds over €3,000 per year to your payroll cost before any other benefits.
Pay slips, records and compliance
Employees have a legal right to a written payslip that shows gross pay, all deductions, and net pay. This is not optional and applies from day one of employment.
You must also keep payroll records for a minimum of six years. If a WRC inspector requests records during a compliance check, you need to be able to show hours worked, rates paid, and the calculations behind each payslip.
Employees who believe they have been underpaid can make a complaint to the WRC. The adjudication process can result in orders to pay arrears plus compensation. There is no cap on arrears — if underpayment ran for several years, the liability can be significant.
One practical check: if you pay employees a fixed weekly or monthly salary rather than an hourly rate, make sure you have reviewed actual hours worked. If contracted or expected hours have increased without a corresponding pay increase, you may have drifted into non-compliance without realising it.
Pension auto-enrolment from 2026
From 2026, Ireland's pension auto-enrolment scheme — My Future Fund — is being introduced. Employers will be required to make contributions on behalf of eligible employees, including those earning at or near the minimum wage. This adds a further payroll obligation on top of PRSI. Employers should plan for the additional cost and administrative steps now, ahead of implementation deadlines.
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This article is general information only and does not constitute legal or tax advice. For guidance specific to your circumstances, consult a qualified adviser or the Workplace Relations Commission.
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