At a Glance
- With limited exceptions, minimum remuneration levels for employment permits in Ireland will not increase in January 2025 (as opposed to what was previously anticipated), pending the outcome of a government review process (submissions for which close on January 10, 2025).
- As an exception, the previously deferred increase to EUR 30,000 for the healthcare assistants and home carers will still occur in January 2025.
- Assuming weekly average earnings will have increased, an adjustment to existing minimum remuneration levels must occur by September 2025 at the latest.
The situation
With limited exceptions, minimum remuneration levels for employment permits in Ireland will not increase in January 2025 (as opposed to what was previously anticipated), pending the outcome of a government review process.
A closer look
- Healthcare assistants and home carers exception. As an exception, the previously deferred increase to EUR 30,000 for the healthcare assistants and home carers special category will still occur in January 2025.
- Public comment period now open. The government is holding an open call for public comment on this change until January 10, 2025. It is currently unclear when the review will be finalized. This is an opportunity for businesses to share with the government how the previous increases in January 2024 affected their business, and how proposed further increases will impact their plans. Fragomen can assist with submissions.
Background
As discussed in a related Fragomen blog, in December 2023, Irish ministers announced that minimum remuneration thresholds for employment permits would increase starting on January 17, 2024, with some increases to be substantial.
While salaries need to rise in line with the cost of living—especially since these thresholds had not been updated in several years—this sudden change, with insufficient advance warning, left businesses with little time to prepare and budget accordingly. Therefore, the decision to defer most of the proposed increases scheduled for January 2025 is welcomed. However, it must be accompanied by continued transparency from the authorities on what the new proposed thresholds will be, along with adequate notice to businesses of when they will take effect.
Impact
Employers are no longer faced with the possibility of a short-notice increase to thresholds for employment permit applications over the holiday period, and this deferral for most roles will afford some breathing space around decision-making on employee compensation. However, as this is merely a deferral, employers must remain engaged on this point as future increases will impact both new employment permit applications and renewals for existing employees.
Employers should also consider raising any concerns or important context as an official submission to the government during the open call for public comments.
Looking ahead
Under the Employment Permits Act 2024, Irish authorities must now review minimum remuneration levels at least every 12 months. Authorities must increase minimum salary levels for employment permits where official government figures indicate there has been an increase in Irish average weekly earnings in the time since the last thresholds were set.
Assuming weekly average earnings will have increased, an adjustment to existing minimum remuneration levels must occur by September 2025 at the latest. It is likely that minimum salary levels will increase at that time.
We will report on related developments.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
