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What impact will the increase in Minimum wage have for employers?

in Blog
For an employee working on minimum wage on a 40 hour week, the consequences for an employer are:
Paying out an extra €12 per week in wages
Increased employers PRSI payment of €9.61.
Total extra cost per week: €21.61
Employers PRSI rises from 8.5% to 10.75% on earnings over €376 and the proposed increase in the hourly minimum wage to €9.55 will mean that an employee working a 40 hour week will exceed that threshold so the higher PRSI rate of 10.75% will start to apply for employers.
The figures contained in the Low Pay Commission Recommendations for the National Minimum Wage 2017 demonstrate that the PRSI cost for an employer for an employee working 39 hours will be €31.66 rising to €41.06 if working a 40 hour week and €43.12 for an employee that works 42 hours.
These extra costs will need to be budgeted for by employers in time for January 2018 if the recommendation to increase the national minimum wage to €9.55 is implemented.
The information contained above is for illustrative purposes only and should not be deemed as professional advice. Please contact a taxation professional before taking any steps to change how you operate your business