Payroll Changes for 2021

Payroll Changes for 2021

Posted: 09/12/2020

With the approach of the new tax year, there are some payroll changes to note for 2021.

Increase in Minimum Wage

From the first of January, the national minimum wage will increase to €10.20 per hour, up from €10.10 previously.  There are some exceptions to paying this rate of pay such as people under the age of 18 years of age or people employed in roles covered by Employment Regulation Orders. 

Statutory Sick Pay Legislation

The Department for Enterprise, Trade and Employment has launched a consultation to examine the introduction of a statutory right to paid sick leave for all employees in an attempt to align with other EU countries.  Currently, there is no legal obligation for employers to pay employees when they are on sick leave.  However, many employers currently pay through terms agreed in Contracts of Employment.  Where sick pay is not provided by the employer, the employee may claim Illness Benefit if eligible to do so.

Report on Gender Pay Gap

The Employment Equality Act 1998 has been proposed to be amended to require that certain employers publish gender pay data for their employees and to propose an action plan for change if the proposal comes into legislation.  Currently there is no indication if it will become law.  A European report has claimed that Ireland will not be able to close the pay gap between men and women if Ireland’s wage disparity is not tackled directly.

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