Minimum Wage Increase - effect on workers earning above the minimum

Absolut

I know the minimum wage increased yesterday from €7.65 to €8.30, but I'm wondering if most companies apply this increase to peoples hourly wages? I realise that the only place I'll get a definite answer from is my employer, but I wanted to get an answer before going back to work next week. So far I've been making €9.92 an hour, €2.27 above the minimimum. So now I'm wondering if the norm is to apply this rate to the new minimum, so basic wage increases from €9.92 to €11.19?

feylya

There's no reason why it should. Employers are not under an obligation to as far as I know.

Our man in Havana

Raising the min wage is bad for those above it as it causes prices to rise all round.

stepbar

Absolut wrote:

I know the minimum wage increased yesterday from €7.65 to €8.30, but I'm wondering if most companies apply this increase to peoples hourly wages? I realise that the only place I'll get a definite answer from is my employer, but I wanted to get an answer before going back to work next week. So far I've been making €8.92 an hour, €1.27 above the minimimum. So now I'm wondering if the norm is to apply this rate to the new minimum, so basic wage increases from €8.92 to €10.19?

You werent on the minimum wage before so therefore you dont get an increase.

leeroybrown

As has been pointed out above your employer is under no legal obligation to increase your wage beyond the statutory minimum. It will be a case your employers own policy.

It does cause an interesting HR problem for employers with all staff suddenly having having a right to something that some more experienced staff needed to work to gain.

jimmycrackcorm

Bond-007 wrote:

Raising the min wage is bad for those above it as it causes prices to rise all round.

That would be true if it were in excess of the minimum amount of money required to get by. As it is, it will just help offset basic price increases such as in transport, gas, electricity.

daveirl

This post has been deleted.

the_syco

jimmycrackcorm wrote:

That would be true if it were in excess of the minimum amount of money required to get by. As it is, it will just help offset basic price increases such as in transport, gas, electricity.

Erm, wtf are you on about, seriously? Min wage goes up, and any product that is cheap due to the companies only paying min wage will be forced to increase the costs of its product, so that they're not working at a loss.

For example, in my last job, this wage increase equals an extra €100 onto my paycheck(per month). So the employer would be giving out between €1000(10 full time staff) and €3000(about 20 or 30 part time staff) extra in wages(per month). If you think that the employer wouldn't raise costs, to ensure that they don't make a loss in profits, you're mistaken.

The other group that looses are those who are no longer on a "good" wage, but are back to minimum wage. Luckily, I'm not in that group, but I'm aware of a few who would "busted their balls" to earn the pay rise, but suddenly they'll be getting the same as someone who only just joined their company.

DubDani

A 0.65 Euro increase an hour will get you 1000 euro more a month? That means you work roughly 1500 Hours a month... Not bad... Not bad..

the_syco

DubDani wrote:

A 0.65 Euro increase an hour will get you 1000 euro more a month? That means you work roughly 1500 Hours a month... Not bad... Not bad..

/me blames the calculator...

€1165 divided by min wage of 7.65 = 152.287
152.287 mulitplyed by 8.30 = €1263.986

ehhhh.... it was late:o

Absolut

Thanks for the responses.

I realise that an employer isn't legally obliged to increase wages as a result of an increase in the mandated minimum wage, my original question was more intended along the lines of leeroybrowns, but I think it's clear now that most employers don't increase wages across the board as a result.

Pablo

Also remember there is a further increase due in July 1st 2007.

eirjobs.com wrote:

This would bring the minimum wage for a 40-hour week from €306 up to €346 per week, or just under €18k/year.