Delays to Auto-Enrolment likely as minimum wage hike looms – CSNA
The government is expected to delay Auto-Enrolment and maintain current Sick Leave policies
Print18 September 2024
As Budget Day nears, deferring the January implementation of Auto-Enrolment is a possibility, and maintaining the current five-day Sick Leave policy for 2025 is also being considered, according to the CSNA.
A cross-sectoral survey and an upcoming workshop suggest the Department is examining how statutory and contractual sick leave is used in the private sector, with attention to the service sector’s challenges.
Minimum wage proposal
The Low Pay Commission has reportedly recommended increasing the National Minimum Wage (NMW) by 80 cents per hour for 2025, raising it to €13.50 for those aged 20 and over.
This represents a 6.3% increase from the current €12.70. Previously, a €1.00 increase was expected as part of the plan to introduce a €15.00 Living Wage by 2026.
Inflation forecasts suggest Ireland’s rate may stay below 2.5% next year.
Implications for employers
The proposed NMW increase could affect wage structures, as many employees earning slightly above the minimum wage might seek to maintain their pay differentials.
The unemployment rate stands at 4.2%, making it difficult for some employers to find workers at the minimum wage.
The CSNA notes that this will be the last NMW adjustment before the next General Election.
Read more: CSNA supports ‘Save Jobs – Sign The Pledge’ campaign
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