Minimum wage rise and sick pay entitlements effective from 1 January

The minimum wage in Ireland has now increased by 80c to €11.30 per hour, with the new rate effective from 1 January 2023.

This will be followed by gradual increases until the minimum wage reaches 60% of hourly median earnings.

The Government previously announced the introduction of a national living wage for employees, which will be introduced over a four-year period and will be in place by 2026, at which point it will replace the minimum wage.

Once the living wage has come into effect in 2026, subject to an assessment of the impact of the change, the Low Pay Commission will advise on the practicalities of gradually increasing the targeted threshold rate towards 66% of the hourly median wage.

The living wage is defined as the minimum amount people need to live and take part in Irish society.

Meanwhile, employees' entitlement to paid sick leave has also come into effect since 1 January. From the start of the New Year, workers can get up to three days of sick leave in a year, paid at 70% of gross salary up to a cap of €110.

The entitlement is expected to increase to 10 days sick leave a year by 2026. In the event of an extended illness, the scheme will operate in tandem with the existing illness benefit system, which kicks in on day four of an absence.