Ireland’s work permit salary threshold increases come into effect

The increases came into force on 17 January after being announced last month, and some employers may now face issues when taking on new starts whose salaries are now too low.

Employment law expert Louise Shaw of Pinsent Masons said: “The salary increases are more restrictive for employers; however, it is worth bearing in mind that the thresholds are still relatively low compared to the wages that many employers, especially in the technology and energy sectors, are likely to be paying their skilled workers.”

The increases also apply to renewal applications, so employers should be mindful of any work permit holders who are close to or below the new threshold. General employment permits are issued for a maximum of two years and can be renewed for a further three years. After five years on this permit, the migrant can apply for a ‘Stamp 4’ permission to enable them to live and work in Ireland without an employment permit.

A worker who applied for a General Employment Permit before 17 January 2024 needed to be paid €30,000 but if they apply for a renewal in January 2025, it is expected that they will need to be earning €39,000. The salary thresholds are expected to increase again in a year’s time. “Therefore, employers will need to be mindful of further salary increases that may be coming and whether they have any workers who will be affected when they come to renew their permit. Where employers are unable or unwilling to pay the increased salary for a renewal application, they will also need to consider the employment risks (unfair dismissal and discrimination) attached to terminating a worker’s employment for this reason. The Critical Skills Employment Permit is, of course, more attractive because it does not require a renewal application and the migrant can apply to move straight to Stamp 4 permission after 2 years,” Shaw said.

Work permits are also being made available for a wider variety of roles. Additions to the critical skills occupation list include a number of engineering roles as well as the role of commercial manager. If a role is on this list, employers are not required to conduct a labour market needs test prior to hiring a non-EEA worker (workers from a European Union state, Iceland, Norway or Liechtenstein). The salary threshold for a Critical Skills Employment Permit, where the migrant holds a degree or equivalent professional experience, has increased from €32,000 to €38,000. It is expected to go up again to €44,000 in January 2025.  The threshold for a Critical Skills Employment Permit without a degree is €64,000 and is not subject to an increase.

The UK is also increasing salary requirements with significant increases coming into force in April 2024 for many sponsored workers, jumping from a minimum requirement of £26,200 a year to £38,700. Shara Pledger, corporate immigration expert at Pinsent Masons, said: “This will make it harder for some employers to recruit migrant workers, either because they cannot meet the wage requirement for the sponsored individual, or because overall the business cannot afford to pay all workers in the same or similar roles at that level.” There will be some discounts, including for those at an early stage of their career, such as graduates, but full details are not yet confirmed.

“There will be similar challenges for British citizens or those otherwise settled in the UK who wish to support their family members. The current earnings threshold to sponsor a family member is increasing from a starting point of £18,600 to £29,000 in April 2024, with further increases slated to bring that figure to £38,700 in time,” Pledger added.