Written answers

Thursday, 7 December 2006

Department of Enterprise, Trade and Employment

National Minimum Wage

7:00 pm

Photo of Pat CareyPat Carey (Dublin North West, Fianna Fail)
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Question 135: To ask the Minister for Enterprise, Trade and Employment if it is legal for an employer to pay part of an employee's wages as expenses or allowance to bring that employee up to the level of the minimum wage; and if he will make a statement on the matter. [42165/06]

Photo of Tony KilleenTony Killeen (Clare, Fianna Fail)
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The National Minimum Wage Act 2000 requires that an employer must pay the appropriate minimum hourly rate of pay. Under Section 19 of the National Minimum Wage Act, the reckonable pay components which may be taken into account in calculating an employee's national minimum entitlement include the following:

1. Basic Pay.

2. Shift premium.

3. Piece and incentive rates, commission and bonuses which are productivity related.

4. The monetary value of board with lodgings, board only or lodgings only, not exceeding the amount, if any, prescribed for the purposes.

5. The amount of any service charge distributed to the employee through the payroll.

Part 2 of the Schedule to the National Minimum Wage Act sets out payments or benefits-in-kind that may not be included as pay of an employee for the purposes of calculating if an employee is being paid his/her minimum rate of pay entitlement. These are as follows:

Non-Reckonable Pay Components

1. Overtime premium.

2. Call-out premium.

3. Service pay.

4. Unsocial hours premium.

5. Any amount distributed to the employee of tips or gratuities paid into a central fund managed by the employer and paid through the payroll.

6. Public holiday premium, Saturday premium and Sunday premium, where any such holidays or days are worked.

7. Allowances for special or additional duties including those of a post of responsibility.

8. Any payment of expenses incurred by the employee in carrying out his or her employment, including travel allowance, subsistence allowance, tool allowance and clothing allowance.

9. On-call or standby allowance.

10. Any payments for or in relation to a period of absence of the employee from the workplace, such as sick pay, holiday pay, payment for health and safety leave under the Maternity Protection Act, 1994 or pay in lieu of notice, but not including a payment made under section 18 of the Organisation of Working Time Act, 1997 (zero hour protection).

11. Any payment by way of an allowance or gratuity in connection with the retirement or resignation of the employee or as compensation for loss of office.

12. Pension contributions paid by the employer on behalf of the employee.

13. Any payment referable to the employee's redundancy.

14. Any advance of a payment referred to in Table 3 in the specific pay reference period relating to a subsequent pay reference period.

15. Any payment-in-kind or benefit-in-kind, except board with lodgings, lodgings only or board only.

16. Any payment to the employee otherwise than in his or her capacity as an employee.

17. Any payment representing compensation for the employee, such as for injury or loss of tools and equipment.

18. An amount of any award under a staff suggestion scheme.

19. Any loan by the employer to the employee, other than an advance payment referred to in paragraph 7 in Part 1 of the Schedule to the Act.

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