Case study: Minimum wage
Sean works 43 hours per week including three hours on a Saturday. He is entitled to the minimum wage of €9.25 as he is an experienced adult employee and isn't on a training or study course. He is paid a gross wage of €400 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 (€400) by the hours worked (43), this gives an average hourly pay of €9.30
This is slightly above the current national minimum wage of €9.25 per hour. Is Sean's employer correct?
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 €380 should be divided by 43, giving an average hourly pay of €8.84 - below the national minimum wage of €9.25.
Sean's entitlement is a basic wage of €397.75 (€9.25 x 43) plus €20 Saturday premium which comes to a total of €417.75.