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Regulations aim to redefine the status of service charges in the calculation of the average hourly pay rate. Specifically, service charges will no longer be considered as a factor when determining the hourly pay rate for employees in certain sectors covered by the Payment of Wages (Amendment) (Tips and Gratuities) Act 2022. The sectors affected by this reclassification include hotels, cafes, restaurants, bookmakers, casinos, hairdressing, and others. This change ensures that employers in these sectors cannot include service charges when calculating an employee's hourly pay rate in accordance with the National Minimum Wage Act 2000.

This communication confirms the eligibility of directors, including proprietary directors, for the remote working daily allowance. It applies when directors have personally incurred and paid for applicable expenses related to their office or employment, which are taxable under the PAYE system. The expenses must directly relate to the emoluments earned, and all specified criteria must be fulfilled.

Additionally, it offers guidance on the obligatory Employer Return of Payments (ERR) reporting, specifically concerning the provision of a remote working daily allowance of up to €3.20.