Budget 2023 is just over a week away, and supports are expected to focus on middle and lower income earners who have been worst affected by the rising rate of inflation.
With groceries, energy and fuel prices all to see further increases over the coming year, many will be eagerly awaiting the Budget announcement in the hopes that it will provide some much-needed relief. The cost of living package is expected to cost at least €2 billion, the biggest cost of living package in Budget history.
The minimum wage currently stands at €10.50 an hour, although employers are legally entitled to pay 18 and 19 year old workers at sub minimum rates worth 80 and 90 per cent of the €10.50 total. Government is now set to raise the minimum wage to €11.30 an hour in 2023.
What is minimum wage?
The National Minimum Wage (NMW) is the minimum wage per hour a worker is entitled to earn in Ireland by law. The minimum wage you receive depends on your age, and the sector you currently work in.
The current national minimum wage if you’re over the age of 20 is €10.20 per hour (January 2022). The hourly rate a worker receives is determined by both their age and whether or not that worker is an apprentice.
You’re only entitled to the NMW if you’re of school leaving age, which is 16. The Government sets the minimum wage rates, applying them to all employees and this includes those who work full-time, part-time, in a small start-up business and those completing essential training for their job
How will minimum wage be affected by the Budget?
This year's Budget will see Government raise minimum wage to €11.30 an hour in 2023. The 80 cent increase is one of several recommendations made in a recent report by the Low Pay Commission.
The move would likely be introduced in January 2023 to coincide with changes expected for USC and PRSI. The 2023 budget will be announced on the September 27 which will officially confirm the rates of pay. Several changes, including energy credit payments and a cost of living package worth reportedly €2 billion, are expected to come into effect for next year.
Those who receive minimum wage are expected to receive a number of supports in Budget 2023. These include an energy payment, an increase in social welfare payments and a double Child Benefit payment along with the Christmas bonus.
Here is a look at what we know so far for minimum wage workers:
Energy Payments
Sky-rocketing energy bills are not likely to let up anytime soon, and according to latest CSO figures electricity costs has jumped by more than 86 per cent in 12 months.
To combat this, a total of three €200 energy credits have been proposed by Government. Green Party leader Eamon Ryan has indicated that one payment could be made before Christmas, with the other two €200 lump sums to be paid before spring.
Fuel Allowance
The Fuel Allowance is set to see an increase of €4 to €5, bringing it to a rate of €37 to €38 in total, but it is yet to be decided if the increase will come into effect before Christmas. This month's Budget is also expected to see an expansion in terms of who is eligible to receive the Fuel Allowance.
Social Welfare
Predictions have been made that that all social welfare recipients will receive an additional once off payment during autumn. This would be similar to a Christmas bonus allocated last year, which saw people receive an additional €20 on their social welfare payments.
Child Benefit
A once-off child benefit payment is also being considered to support families, which is expected ahead of the Christmas season. Parents with one child could receive €280 under this proposal, while parents with two children would be entitled to €560.
Childcare
It is understood that Government is also aiming to reduce childcare costs by €200 per month next year and a further €200 per month the following year. Children's Minister Roderic O'Gorman previously said he hopes to see childcare fees fall by 50 per cent over the next two years.
Read Next:
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Budget 2023: Double payments, Christmas bonuses and energy credits among cost of living measures
Social Welfare Ireland: Payments of up to €924 to tackle energy crisis costs just 9 days away
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