Increases to the National Minimum Wage Ireland 2026

January 7, 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.

By Tara Daly February 4, 2026
The Workplace Relations Commission (WRC) has updated its Code of Practice on Access to Part-Time Work, providing clearer guidance on best practices for employers and employees in today’s flexible working environment. While the revised Code is similar to the previous version, it adopts a more positive tone towards part-time work, presenting it as a modern and flexible way of working rather than an exception . In particular, the Code places greater emphasis on work–life balance considerations, including from the perspective of parents and carers. Although the Code does not create a legal right to part-time work, it sets clear expectations for employers in terms of how requests should be handled and reinforces the importance of fair and consistent treatment of employees. Key Updates and Takeaways Part-Time Work as a Positive Option The updated code recognises part-time work as a valuable way to enhance labour market participation and provide flexibility. Employers are encouraged to view part-time arrangements as a strategic and beneficial option, rather than a limitation. Equal Treatment A central principle of the code is that part-time employees must not be treated less favourably than full-time employees. This means that pay, benefits, access to training, and career progression should be proportionate and fair, ensuring that part-time staff are not at a disadvantage. Structured Procedures for Requests A key development in the revised Code is the increased emphasis on employers adopting a clear, step-by-step framework when dealing with requests to move between full-time and part-time work. Employers are encouraged to: Review and update policies to reflect the code’s guidance. Respond to requests following a clear, structured procedure. Provide meaningful reasons if a request cannot be accommodated. Rather than informal consultation alone, requests should now be considered through a structured and documented process. Flexible Roles and Recruitment The revised Code encourages employers to consider whether part-time working can be accommodated at the point of job design and recruitment. This may include job-sharing arrangements, flexible schedules, or adjusting workloads to maintain role effectiveness. Responsibilities of Employers and Employees Under the revised code, employers are expected to establish clear policies, actively monitor roles for flexibility, provide part-time employees with equal access to training, and ensure that no employee is penalised for requesting part-time work. It is equally important to communicate with all staff about part-time opportunities, including how to request them and the criteria used to assess requests. Clear communication helps maintain transparency and ensures a fair, consistent approach to flexible working across the organisation. Employees, in turn, are responsible for complying with agreed arrangements, understanding that not all roles may be suitable for part-time work, and performing their duties as required. Both employers and employees play an important role in making part-time arrangements fair, transparent, and effective. Legal Relevance Although the code is not legally binding, it is admissible in evidence. Adjudicators may rely on it when assessing whether an employer’s approach to part-time work requests is reasonable, fair and aligned with best practice. What Does This Mean for Your Business? The revised Code encourages employers to take a more structured and considered approach to part-time working, while also protecting the operational needs of the business. For SMEs in particular, clear procedures and consistent decision-making are essential to managing requests effectively and avoiding unintended legal or operational risks. Having a documented process helps employers demonstrate fair consideration of requests, apply objective business grounds where flexibility is not feasible, and maintain continuity of service. Done properly, part-time arrangements can support retention and engagement without undermining productivity or resourcing.  Part-time work should not be viewed as an automatic entitlement or an informal arrangement. Employers are encouraged to review their policies, communicate expectations clearly, and ensure that any flexibility granted is sustainable, consistent, and defensible if challenged. If you need any assistance reviewing your company policies in line with this revised Code of Practice, please do not hesitate to contact MSS The HR People. PH: 018870690 Email: info@mssthehrpeople.ie
By Tara Daly February 4, 2026
A recent Workplace Relations Commission (WRC) decision highlights the significant risks employers face when they fail to follow fair procedures in managing employee illness and highly sensitive personal circumstances. In this case, a sushi chef who was dismissed shortly after suffering a miscarriage was awarded €8,000 in compensation for unfair dismissal. The decision serves as an important reminder to employers that regardless of previous concerns around attendance or conduct, employers must act reasonably, compassionately and in accordance with fair procedures. Background of the Case The complainant was employed as a sushi chef with Beacon Sushi Limited. In early 2024, she informed her employer that she was unwell and subsequently confirmed that she had suffered a miscarriage. She later provided a medical certificate covering her absence from work. Approximately five days after the miscarriage, the employee received a WhatsApp message notifying her that her employment was being terminated and that she was expected to work her notice period, even though she was medically unfit to do so at the time. The employer claimed that the dismissal was due to concerns regarding timekeeping and the employees alleged failure to follow the company’s absence reporting procedures. WRC Findings The WRC adjudication officer found that the dismissal was unfair and was critical of the manner in which the employer handled the situation. The WRC noted that the dismissal letter did not set out any clear reasons for termination and that no meeting was held with the employee prior to the decision being made. In addition to this, the employee was never given an opportunity to respond to the concerns raised, nor was she afforded a right of appeal. The adjudicator also considered that the employer was aware of the employee’s medical circumstances when the dismissal decision was made. The WRC found that dismissing an employee in such circumstances, while she was on certified sick leave and without any fair or transparent process, fell well short of the standards required under Irish employment law. As a result, the employee was awarded €8,000 in compensation for unfair dismissal. Key Lessons for Employers This case serves as a reminder that fair procedures are essential in all dismissal situations, regardless of the surrounding circumstances. Even where an employer believes there are legitimate concerns relating to attendance or conduct, employees must be informed of those concerns, given a meaningful opportunity to respond, and provided with access to an appeal process. The decision also highlights the need for particular care where an employee is medically vulnerable or experiencing significant personal trauma. Employers are expected to exercise sensitivity and sound judgement when managing illness-related absences, particularly when the employer is already aware of the employee’s medical condition. Dismissals that take place during periods of certified sick leave carry an increased level of risk and will be closely scrutinised by the WRC. This risk is further heightened where dismissals are communicated informally, such as by text message or WhatsApp. Informal communication around dismissals has been repeatedly criticised by the WRC. Finally, the case demonstrates that management policies should be applied thoughtfully and must consider the individual circumstances at hand, rather than being rigid. While policies provide an important framework, they should not be used as a substitute for fair judgement or proper procedures. Conclusion This WRC decision is a timely reminder of the legal and reputational risks that can arise when employers fail to follow fair procedures, particularly in cases involving illness or sensitive personal circumstances. Employers should regularly review their practices around sick leave management, disciplinary procedures and dismissals, to ensure compliance with employment legislation and alignment with best practice.  If you require advice on managing sick leave, dismissals or disciplinary processes, please do not hesitate to contact MSS The HR People: Ph 018870690, Email: info@mssthehrpeople.ie
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