In Ireland, the national minimum wage is set to increase to €14.15 per hour from January 1, 2026. This change, announced in Budget 2026, represents a €0.65 (4.8%) increase from the current rate of €13.50 per hour.
Key Details of the 2026 Minimum Wage Change
- New Hourly Rate: €14.15 per hour for employees aged 20 and over.
- Effective Date: January 1, 2026.
- Basis: The increase was recommended by the independent Low Pay Commission and accepted by the government.
- Impact: A full-time worker (39 hours/week) will earn an additional €25.35 per week, or approximately €1,318 annually before tax deductions.
- Related Tax Change: The ceiling for the Universal Social Charge (USC) 2% rate band will be increased to €28,700 to ensure that full-time minimum wage workers do not move into a higher tax bracket as a result of the raise.
- Goal: This increase is part of a broader government plan to phase in a National Living Wage, set at 60% of the median hourly wage, which is expected to eventually replace the national minimum wage system.