John M Shanahan & Co.

linking practice to business

Chartered Accountants
Registered Auditors

Phone: 057 93 22100


Pay & Wage Rates

The basic method of calculating pay is to divide the gross pay amount by the total number of hours worked. To begin with, however, it is necessary to note what pay is taken into account, what hours are included as working hours and what is the pay reference period i.e.over what period the calculation is made.

Pay Slips
All employees are entitled to receive a pay slip with every payment of wages. This pay slip should show gross wage (wage before deductions) and the nature and amount of each deduction.

An employer is allowed to make the following deductions from an employee’s wage:
Any deduction required or authorised by law (e.g. PAYE or PRSI) Any deduction authorised by the term of an employee's contract (e.g. pension contributions, or particular till shortages) Any deduction agreed to in writing in advance by the employee (e.g. health insurance subscription, sports and social club membership subscription)
For further information download - Guide to Payment of Wages.
Follow the link to the relevant legislation; Payment of Wages Act, 1991.
National Minimum Wage

The National Minimum Wage is €9.25 per hour.

Rates on or after 1st January 2017


Min Hourly rate of Pay As % of Minimum Wage
Experienced Adult Workers €9.25 100%
Aged under 18 €6.48 70%
First year from date of first employment aged over 18 €7.40 80%
Second year from date of first employment aged over 18 €8.33 90%
Employee aged over 18, in structured training during working hours    
1st one third period €6.94 75%
2nd one third period €7.40 80%
3rd one third period €8.33 90%


The National Minimum Wage applies to all employees except:

a)    Employees in industries (such as the construction industry) which are covered by registered employment agreements (REA's) and Employment Regulation Orders (ERO's), entitling their workers to a higher minimum wage

b)    Employees who are in their first year of employment since turning the age of 18 (€7.40 per hour)

c)    Employees who are under 18 years of age (€6.48 per hour)

d)    Employees who are in their second year of employment since turning 18 (€8.33 per hour)   

e)    Employees who are close relatives of the employer

f)    Employees undergoing structured training such as an apprenticeship (other than hairdressing apprenticeships) 

It should be noted that in some industries employees are entitled to additional rights.

If you are not receiving the national minimum wage, you may enforce your rights by completing the new online complaint form.

You may either request an inspector from the National Employment Rights Authority (NERA) to investigate a claim that the national minimum wage is not being paid. or

You may refer a dispute to a Rights Commissioner.

For further information on the national minimum wage see the detailed guide to the Minimum Wage Act 2000 (pdf) or contact Workplace Relations Customer Services

For further details visit Work Place Relations site.


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