Case study: Minimum wage

The national minimum wage increased to €10.50 from 1 January 2022.

Sean works 39 hours per week including three hours on a Saturday. He is entitled to the minimum wage of €10.50 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 €420 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 (€420) by the hours worked (39), this gives an average hourly pay of €10.77

This is above the current national minimum wage of €10.50 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 €400 should be divided by 39, giving an average hourly pay of €10.26 - below the national minimum wage of €10.50.

Sean's entitlement is a basic wage of €409.50 (€10.50 x 39) plus €20 Saturday premium which comes to a total of €429.50.

Page edited: 6 January 2022