Minimum Wage
Ireland’s Budget 2027 was announced at the beginning of October 2026. From 1 January 2027, the statutory minimum wage will increase from €14.15 per hour to €14.94 per hour for those aged 20 and over.
The Department of Enterprise, Tourism, and Employment commented in a press release the day of Budget 2027 that the increase to the national minimum wage balances “support for workers’ incomes with measures to strengthen competitiveness.”
Living Wage
Notably, the press release went on to confirm the removal of the 2029 ‘living wage’ timeline in a move which they say provides certainty for employers.
In 2022, the Government had outlined a proposal to introduce a living wage for all employees, initially planned to be phased in over 4 years.
The living wage was to be set at the rate of 60% of the median wage in any given year, with the national minimum wage to remain in place until the 60% living wage was fully phased in.
At the time of announcement, it was envisaged that from 2026, the minimum wage would no longer apply, and instead it would be mandatory for all employers to pay the living wage at a minimum. This timeline was later extended to be phased in by 2029, until it was officially paused this year.
This move aligns with a broader pattern of reluctance by the Government to increase costs for small businesses. For example, when statutory sick leave was introduced, it was planned to increase gradually, starting from 3 days in 2023, 5 days in 2024, 7 days in 2025, and 10 days in 2026, payable at a rate of 70% of pay up to €110 per day. However, in 2025 it was announced that the number of statutory sick days would not be expanded, and remains at 5 days per year.
