In this report, we discuss the impact of the increased minimum wage on employers in Ireland with employees on an employment permit.
The statutory minimum wage in Ireland will be raised from €9.55 per hour to €9.80 per hour, effective from 1 January 2019.1 This will have implications for employers in Ireland with employees who are coming to work in Ireland or who are currently working in Ireland on an employment permit.
Global mobility advisers, immigration counsel, and globally mobile employees coming to Ireland need to be aware of the changes. Minimum salary requirements will change periodically and these will need to be reflected in employee salary and pay statements. Non-compliance can result in prosecution and refusal of employment permit renewals.
To be eligible to apply for an employment permit in Ireland, the base salary, as the first component of the remuneration package, must meet these revised statutory rates as applicable. Various employment permissions will be affected, including Atypical Working Schemes, Intra-Company Transfer Employment Permits, and Contract for Services Employment Permits.
The revised rates will also apply to employment permits already in force. Thus, employers will be required to increase the minimum base salary for employees from €9.55 per hour to €9.80 per hour where applicable.
Failure to apply the revised statutory minimum wage requirements may lead to a prosecution against an employer and a refusal by the Department of Business, Enterprise and Innovation in the case of an employment permit renewal.
Employers need to be cognizant of the updates to national minimum wage requirements and how they may affect their employees who may be close to the remuneration thresholds.
* Please note that KPMG LLP (U.S.) does not provide any immigration services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.
The information contained in this newsletter was submitted by the KPMG International member firm in Ireland.
© 2020 KPMG, an Irish partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organisation please visit https://home.kpmg/governance.
Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.