Irish legislation changes in 2024

Throughout Ireland, companies should expect a variety of modifications to Irish legislation this year – as the Government and Revenue announced plans to update allowances such as wages and time off, along with the introduction of changes to various employment laws.

Some are still in their infancy, with the Irish Government not yet confirming an implementation date, however we’ve pulled together details of everything we know so far.

We’ve made every effort to check the information provided here is correct and accurate at the time this article was published. Nevertheless, the Government might adjust the timelines throughout 2024 as plans evolve.

Minimum wage increase

At the start of this year, the national minimum wage increased to €12.70 per hour from the previous €11.30, for employees aged 20 years and older from 1 January 2024. For younger employees aged 19 the minimum wage entitlement is €11.43, aged 18 €10.16 and €8.89 for those under 18.

This came into effect from 1st January 2024.

Statutory Sick Leave Act 2022

The previous entitlement for employees to take 3 days paid statutory sick leave under the Sick Leave Act 2022 has now increased to 5 days. To qualify, employees must have a minimum of 13 weeks’ continuous service and provide an appropriate medical certificate.

This came into effect from 1st January 2024.

Parent’s Leave

Included in the Budget 2024 announcement was an intention to extend parent’s leave and parent’s benefits from 7 weeks to 9 weeks. Parent’s leave is available to both employees and people who are self-employed, and there is no minimum length of service. There is no obligation on the employer to pay an employee on parents’ leave, but an employee may be entitled to the State Parent’s benefit, provided the employee has sufficient PRSI contributions.

This will come into effect in August 2024.

Pension auto-enrolment

Whilst not fully confirmed yet, the current proposal is to introduce a pension auto-enrolment scheme for employees aged 23-60, who are not already in an existing occupational pension scheme and earn €20,000 or more per year. This is expected to include set contributions by the employer, employee, and Government, with the chance for employees to opt-out after six months.

There is no confirmed date this will come into effect; current timescales indicate the second half of 2024.

Gender Pay Gap Reporting Information Act 2021

Under the Gender Pay Gap Information Act 2021, from 2022 employers with 250 or more employees were required to disclose a range of metrics to the Irish Government, including the average hourly rate paid to men and women. For the December 2024 reporting deadline, this will change to organisations with 150 or more employees, with further plans to roll this out in 2025 to businesses with 50 or more employees.

This will come into effect in December 2024.

Code of Practice on determining Employment Status (Employed or Self-Employed)

The Revenue are now reviewing the distinction between employees and self-employed persons following an ongoing court case and appeal involving Karshan (Midlands) Ltd t/a Domino’s Pizza around the correct categorisation of delivery drivers. On 3rd January 2024, Revenue, DSP, and the WRC confirmed that they will be updating the Code of Practice on determining Employment Status in the Tax and Duty Manual.

Changes are expected to be announced in early 2024.