Blanchardstown & Dublin 15 Citizens Information Centre
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Know your Rights: March 2011

Minimum wage

Q. I earn the minimum wage. From 1 February the minimum wage has been reduced from €8.65 to €7.65. Does this mean that my wages for February will be reduced by €1 an hour?

It depends on your contract of employment. Even if you don’t have a full written contract of employment, under the Terms of Employment (Information) Acts 1994 and 2001, you should have a written statement of terms of employment which should include your rate of pay or how your pay is calculated.

If your contract or terms of employment state that you are paid according to the "prevailing national minimum wage hourly rate" your pay can be reduced without your agreement. Your contract could also include a clause that says that your pay can be reduced (in line with minimum wage rates or for other reasons).
However, if your contract states specifically that you are paid €8.65 an hour, your employer cannot reduce this without your agreement. This is because any change to the terms and conditions of your employment must be agreed between your employer and yourself. This requirement for both the employer and the employee to consent to changes in the terms of the contract is part of contract law.
Your employer may tell you that the only alternative to a reduction in your wage is reduced hours or redundancy. If this happens you should get more information and advice about your options.
You can get more information on the changes to the minimum wage from the National Employment Rights Authority (Lo-call 1890 80 80 90 or employmentrights.ie). You can also contact the "Irish Congress of Trade Unions" FairWage Helpline at 0818 300 900 for information and advice.

Further information is available from your local Citizens Information Centre.

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Student charges

Q. I am confused about the changes to the Student Services Charge. Why is it more for the first child and less for the second child in a family?

Currently third-level students pay an annual Student Services Charge (also known as a registration fee) of €1,500. For the new academic year 2011/12 this charge has been replaced by a flat-rate Higher Education Student Contribution of €2,000 per year. Part-time students pay €1,000 per year. All eligible students will have to pay this contribution.
Students who qualify for third-level grants do not have to pay it and families whose reckonable income is below certain limits pay a half-rate contribution (visit citizensinformation.ie to check the limits for your family). You can pay the contribution in two instalments.
You cannot claim tax relief on the current Student Services Charge since it is not considered a fee. (If third-level students pay fees they can claim tax relief on these fees under certain conditions.)

However the new Student Contribution will be eligible for tax relief in some circumstances. This is where the difference between the first and second children in a family arises. You cannot claim tax relief on the first €2,000 payable by your family (e.g. your first child). However you can claim tax relief on any other student contributions you pay (e.g. any other children in higher education). The tax relief is at the standard rate of 20%. In effect, this means that the second and subsequent siblings pay a student contribution of €1,600 instead of €2,000. If your children are studying part-time the first €1,000 is not eligible for tax relief.

Further information is available from your local Citizens Information Centre.

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National Age Card

Q. What are the changes to the National Age Card Scheme?

Schools can ask pupils for some types of payment. However, schools cannot operate charges, in any form, that are in effect mandatory fees. This would be contrary to the principle of not charging fees.
You must now apply online for your card (paper application forms are no longer available in Garda stations). An Age Card is a card that people over 18 can use to show that they are legally old enough to buy alcohol. It is not an identity card and cannot be used for any other purpose other than proof of age.
To apply for a card you must go to agecard.ie, fill out the application form and make the payment of €10 (by credit card or age card voucher – available from post offices). You will be sent an application form within three working days.
You must then go to your local Garda Station to have your application and identity authenticated. You should bring the application form and the following documents:

• Your birth certificate
• One other form of ID (a GNIB (Garda National Immigration Bureau) Card, passport or driving licence)
• One recent passport photograph

The Garda Station will forward your application form and photograph to the Age Card section and you will receive your Age Card within 10 working days.

Further information is available from your local Citizens Information Centre.

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Difficulties with paying the mortgage

Q. I have recently lost my job and am really struggling to pay my mortgage. I’m worried that I will lose my tracker rate. What help can I get, if any?

You should talk to your mortgage lender as soon as possible. Don’t delay and allow arrears to build up.
The Central Bank’s Code of Conduct on Mortgage Arrears sets out procedures that your lender must follow. Under the Code lenders must treat borrowers fairly and help them to meet their mortgage obligations. This means, among other things, providing you with the information you need promptly, and ensuring that this information is easy to understand. The Code also specifies that you cannot be asked to change from an existing tracker mortgage against your wishes.
Your lender must explore all options for alternative repayment arrangements with you. These can include paying interest only for a period, extending the term of the mortgage or capitalising any arrears and interest. If you agree and keep to an alternative repayment arrangement with your lender they cannot initiate legal action against you.
You may also be entitled to Mortgage Interest Supplement. This is a short-term means-tested payment to help you with your mortgage interest repayments. Part of the form will need to be filled in by your lending agency. (Your lender must give you any information you need to claim State benefits or supports within 10 business days of your request.) You apply to the Community Welfare Officer at your local health centre.
You should also ensure that you are getting whatever amount of mortgage interest relief you are entitled to.
The Money Advice and Budgeting Service (MABS) is a free service to help you plan a budget and deal with debt (mabs.ie, Lo-call 1890 283 438).You can also visit the Citizens Information Board’s website, keepingyourhome.ie for comprehensive information on mortgages arrears and related issues.

Further information is available from your local Citizens Information Centre.

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