Case study: Minimum wage
Note: The national minimum wage will increase to €10.20 from 1 January 2021. This case study is based on rates from 1 February 2020 until 31 December 2020.
Sean works 39 hours per week including three hours on a Saturday. He is entitled to the minimum wage of €10.10 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 €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 (39), this gives an average hourly pay of €10.25
This is above the current national minimum wage of €10.10 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 39, giving an average hourly pay of €9.74 - below the national minimum wage of €10.10.
Sean's entitlement is a basic wage of €394 (€10.10 x 39) plus €20 Saturday premium which comes to a total of €414.