The 2025 National Minimum Wage Increase
The National Minimum Wage has increased from €12.70 to €13.50.
As of 1 January 2025, the minimum wage has undergone an increase of 80 cent, with some separate rates in place for select sectors.
What is the National Minimum Wage?
The National Minimum Wage Act 2000 requires all employers to pay employees the minimum hourly pay rate.
The National Minimum Wage, which is a minimum hourly pay rate, applies to full-time, part-time, temporary and casual employees, as well as seasonal workers. There are some exceptions, but these should be dealt with on a case-by-case basis.
This update was announced in Budget 2025, on Tuesday 1 October 2024, and has now officially come into place as of January 2025. Businesses should ensure that they are up to date with the increase and that they have made any relevant payroll adjustments.
Increases to payment rates in the construction and security sectors
In certain sectors, however, there are different minimum rates of pay in place.
From 1 August 2025, the new Sectoral Employment Order (Construction Sector) 2024 is expected to come into effect, which sets out rate increases for the construction sector. These rate increases are planned for August 2025 and August 2026.
The new rates will vary depending on the category that each construction worker falls into, with various different categories identified. For instance, apprentices and craftspeople make up two of the categories identified, and they will receive different rates of pay.
Separately, the rate of pay for those working unsocial hours in the security sector increased on 1 January 2025. The unsocial hours premium, which had been €12.60 minimum payment per shift, has now increased to a €16.80 minimum payment per shift.
How does the National Minimum Wage affect Irish businesses?
The increase to the National Minimum Wage, along with other recent and upcoming legislative changes such as pension auto-enrolment, may put additional financial strain on Irish businesses.
Our recent global survey revealed that rising costs are a top concern for businesses around the country, with many businesses citing payroll costs as a specific concern.
It’s important that companies ensure they have made sufficient payroll adjustments now that the increase has come into effect, and that they have factored the increase into their long-term budget.
Get expert advice with Peninsula
Our advisors can answer any questions you have in relation to the National Minimum Wage, and the steps you should take to remain compliant.
As a trusted HR and Health & Safety consultancy, Peninsula serves thousands of small businesses across Ireland.
Peninsula clients receive bespoke workplace documentation and policies that are regularly updated in line with any changes in employment law.
They also benefit from 24/7 employer HR advice supported by a litigation representation team should you suffer a Workplace Relations Commission claim.
To learn more about how our services can benefit your business, call an expert today at 1800 719 248.