Reduction of national minimum wage

In some cases an employment contract or terms of employment will say that an employee is paid at the “prevailing National Minimum Wage hourly rate”. Where this is the case, an employer may reduce the employee’s pay in line with the minimum wage rates. In other cases there may be a provision in the contract that provides for a reduction in pay.
Where this is not the case, and an employee is on the previous minimum rate of €8.65, the employer cannot reduce it without the employee’s agreement, as this would change the employee’s terms and conditions of employment. The employee may agree to reduced wages, if, for example, the alternative may be reduced hours or redundancy in the current economic situation.

Of course the national minimum wage (NMW) does not stop an employer from offering a higher wage. If you have any concerns/questions give us a call or email us at