A lot was supposed to change in Irish employment law in 2026. Some of it landed exactly as forecast. Some of it quietly didn’t happen at all. One major piece is still working its way through. Here’s what’s actually true right now, not what was predicted a year ago.
Minimum Wage: Up, But Not Replaced by a Living Wage
The national minimum wage rose to €14.15 an hour from 1 January 2026, a meaningful increase, but the minimum wage itself wasn’t replaced by a statutory living wage as had been expected. The government’s living wage plan (targeting 60% of median earnings) has been pushed out to 2029 rather than 2026. A living wage figure still exists as a voluntary benchmark that some employers choose to pay, but it isn’t a legal requirement. If you budgeted for a bigger jump, the actual increase was smaller than planned, worth revisiting your pay bands against the real number.
Statutory Sick Pay: Stayed at 5 Days
Statutory sick pay was expected to rise to 7 days in 2026 on its way to 10 days by 2027. That increase didn’t go ahead. The entitlement remains at 5 days per year, paid at 70% of normal wages up to €110 a day. The government has said it isn’t planning to raise this further for now. Unused days don’t carry over, so the entitlement resets each January.
Auto-Enrolment Pension: Live as Planned
The auto-enrolment pension scheme, “My Future Fund,” launched on schedule on 1 January 2026. It applies to employees aged 23–60 earning over €20,000 a year who aren’t already in a workplace pension. In this first phase, both employer and employee contribute 1.5% of salary, with the government adding a top-up, and contributions are scheduled to rise gradually over the following years. Contributions apply up to €80,000 of salary. If you have eligible staff and haven’t set this up yet, it’s worth prioritising. See gov.ie’s Auto-Enrolment overview for the current requirements.
Pay Transparency Directive: Delayed
The EU’s Pay Transparency Directive was due to be transposed into Irish law by 7 June 2026. Ireland confirmed it wouldn’t meet that deadline, and full transposition is still in progress. Employers won’t be penalised for not having every element in place by the original date, but a phased rollout is underway. The Gender Pay Gap Portal is expected to be operational for the November 2026 reporting cycle. If your business already publishes salary ranges or gender pay gap data, keep an eye on further guidance rather than treating the June deadline as final.
What This Means for Employers
- Update pay bands to the real €14.15 minimum wage figure, not the higher living wage projection
- Statutory sick pay budgeting can stay at 5 days rather than planning for 7
- If you have eligible employees, auto-enrolment obligations are live now: this one didn’t slip
- Pay transparency requirements are coming, just later and more gradually than first announced, worth planning for, not urgent yet
See our PAYE, PRSI, and USC guide for how auto-enrolment fits into your regular payroll processing.
Need Help With Payroll Compliance?
If you’re not sure how these changes actually affect your payroll setup, we’ll check your current position against what’s real, not what was announced, and get you ahead of what’s still coming.