Increases to the National Minimum Wage Ireland 2026
Current National Minimum Wage Rates
With effect from 1 January 2026, the National Minimum Wage in Ireland has increased to €14.15 per hour. Employers must now ensure that all eligible employees are paid at least the applicable minimum hourly rate for hours worked.
This increase represents a further step in the ongoing progression of statutory pay rates and has important implications for payroll, budgeting and compliance.
The full National Minimum Wage rate applies to employees aged 20 years and over, subject to the limited exemptions outlined below.
The current statutory hourly rates are as follows:
· Employees aged 20 years or over: €14.15 per hour
· Employees aged 19: €12.735 per hour (90 %)
· Employees aged 18: €11.32 per hour (80 %)
· Employees under 18: €9.905 per hour (70 %)
Who the National Minimum Wage Does Not Apply To
The National Minimum Wage does not apply to the remuneration of the following categories of workers:
The spouse, parent, grandparent, step parent, child, step child, grandchild, brother, sister, half brother or half sister of the employer where they are employed by the employer. A craft apprentice within the meaning of the Industrial Training Act 1967 or the Labour Services Act 1987.
Employers should also be aware that alternative minimum pay rates may apply under Sectoral Employment Agreements or Employment Regulation Orders issued by the Workplace Relations Commission. Where these apply, they override the general National Minimum Wage.
Entitlement Based on Working Hours
The National Minimum Wage applies to all employees regardless of working pattern. This includes full time, part time, temporary, casual and seasonal employees. All hours worked must be paid at least at the applicable statutory rate.
Calculating Hourly Pay and Reckonable Pay
For the purposes of compliance, employers must calculate an employee’s average hourly rate of pay over the selected pay reference period.
Reckonable pay includes the following:
· Basic pay
· Shift premium
· Piece or incentive rates
· Commission
· Zero hour protection payments under the Organisation of Working Time Act 1997
· Productivity related bonuses
· Service charge paid through payroll
The value of board and or lodgings may also be included, subject to statutory limits. From 1 January 2026, the maximum allowable amounts are:
Board only: €1.27 per hour worked
Accommodation only: €33.42 per week or €4.77 per day
Non-Reckonable Pay
The following payments cannot be included when calculating whether the National Minimum Wage has been met:
Overtime, call out premiums, service pay, weekend or public holiday premiums, expenses incurred by the employee, unsociable hours premiums, tips or gratuities paid through payroll, allowances for special or additional duties, most benefits in kind other than board or lodgings, sick pay, pension contributions, redundancy payments, compensation for injury, employer loans or wage advances, and payments in lieu of notice.
Pay Reference Period
Employers may calculate average hourly pay over a pay reference period of one week or one fortnight. The pay reference period must not exceed one month.
Employers are required to inform employees in writing of the pay reference period being used, typically within the employee’s terms and conditions of employment.
Employees are entitled to request a written statement of their average hourly rate of pay for any pay reference period within the previous twelve months, other than the current period.
Employee Complaints
An employee may refer a complaint to the Workplace Relations Commission where there is an alleged failure to pay the National Minimum Wage or where victimisation is claimed.
An employee must first request a written statement of their average hourly rate of pay. A complaint must generally be made within six months of receiving that statement or from the date it should have been provided.
What Employers Should Do Now
Employers should ensure that all employees earning at or near the minimum wage have had their pay adjusted from 1 January 2026.
There is no automatic entitlement to an increase for employees already earning above the minimum wage. However, employers should be prepared for possible queries or requests arising from the increase.
While there is no statutory requirement to issue confirmation of the increase, many employers choose to notify affected employees in writing of their updated rate of pay and the effective date.
Impact of the Increase
As a result of this increase, an employee working a standard 39 hour week on the National Minimum Wage will now earn an additional €40.90 per week, or approximately €2,129.40 gross per year.
As the new National Minimum Wage is now in effect, employers should take the opportunity to review their pay practices, payroll systems and budgets to ensure full compliance.
If you require assistance reviewing pay structures, updating employment contracts or managing employee queries don’t hesitate to get in touch.
Contact us at info@mssthehrpeople.ie, Ph +353 1 887 0690, or visit www.mssthehrpeople.ie.
