Case study: Minimum wage
The national minimum wage increased to €13.50 from 1 January 2025.
Case study
Sean works 39 hours per week including 3 hours on a Saturday. He is entitled to the minimum wage of €13.50 as he is 20 years of age, (people aged 20 and above are entitled to 100% of the minimum wage) an employee and isn't on a training or study course.
He is paid a gross wage of €530 per week. Sean's pay includes a €20 premium for working Saturdays. He asked his employer about the national minimum wage and his employer gave him the following information:
- The pay reference period is weekly
- Dividing the gross pay (€530) by the hours worked (39), this gives an average hourly pay of €13.59
This is above the current national minimum wage of €13.50 per hour. Is Sean's employer correct?
Answer
No, Sean's employer is incorrect. The €20 premium for working on Saturdays should not be included for national minimum wage purposes. This means that only €510 should be divided by 39, giving an average hourly pay of €13.08 - below the national minimum wage of €13.50.
Sean's entitlement is a basic wage of €526.50 (€13.50 x 39) plus €20 Saturday premium which comes to a total of €546.50.