Ireland's national minimum wage increased to €14.15 per hour from 1 January 2026. This employer guide covers all sub-minimum rates by age, payroll calculations, compliance obligations, and the penalties for getting it wrong Read more
Understanding minimum wage in Ireland is a compliance requirement for every employer. As of 1 January 2026, the national minimum wage increased to €14.15 per hour for employees aged 20 and over. This guide covers current rates, age-based sub-minimum rates, compliance obligations, and the practical impact on your payroll.
The national minimum wage is set under the National Minimum Wage Act 2000. Following the Low Pay Commission’s recommendation as part of Budget 2026, the adult minimum wage rose by €0.65 from €13.50 to €14.15 per hour, effective 1 January 2026. This represents a 4.8% increase.
| Age Group | Hourly Rate (2026) | % of Minimum Wage | Previous Rate (2025) | Increase |
|---|---|---|---|---|
| 20 years and over | €14.15 | 100% | €13.50 | +€0.65 |
| 19 years old | €12.74 | 90% | €12.15 | +€0.59 |
| 18 years old | €11.32 | 80% | €10.80 | +€0.52 |
| Under 18 | €9.91 | 70% | €9.45 | +€0.46 |
These are the legal minimums. Employers are free to pay above these rates, and many sectors have higher rates set through Employment Regulation Orders (EROs) issued by Joint Labour Committees.
If you need help reviewing employee contracts to reflect the new rates, our employment advice team can guide you through the process.
Workers under 20 receive a percentage of the adult minimum wage in Ireland:
Once an employee turns 20, they are entitled to the full rate of €14.15 per hour regardless of experience.
All other workers, including those on work experience placements, internships, and work trials, must be paid at least the applicable rate.
If your business genuinely cannot afford to pay the minimum wage, you may apply to the Labour Court for a temporary exemption lasting 3 to 12 months. A majority of affected employees must agree, and you must demonstrate that paying the minimum wage would result in layoffs. Only one exemption is permitted.
Non-compliance with the National Minimum Wage Act 2000 can result in enforcement action, financial penalties, and reputational damage.
Keeping your HR policies and procedures up to date is a critical part of compliance. Our HR compliance service can conduct a full review of your practices.
Understanding what is included matters for avoiding accidental non-compliance. Employers should also be aware of the Payment of Wages Act.
Included:
Not included:
A common pitfall is assuming overtime premiums or tip income count toward the minimum wage. They do not.
The risk extends beyond financial penalties into employer brand damage. For more details, visit the Workplace Relations Commission.
For a full-time employee working 39 hours per week on the minimum wage in Ireland:
| Metric | 2025 (€13.50/hr) | 2026 (€14.15/hr) | Difference |
|---|---|---|---|
| Weekly gross pay | €526.50 | €551.85 | +€25.35 |
| Annual gross pay (52 weeks) | €27,378 | €28,696.20 | +€1,318.20 |
For 10 full-time minimum wage employees, the annual additional cost is approximately €13,182 in gross wages before employer PRSI. These employees are also entitled to annual leave pay at the increased rate.
The Budget 2026 adjustment to the employer PRSI threshold prevents employers from being pushed into the higher rate (11.05%) solely because of the minimum wage increase. Verify your payroll system reflects the new threshold. Further guidance is available from Revenue.
When the minimum wage rises, the gap between your lowest-paid and mid-level employees narrows. This can cause dissatisfaction among experienced staff. Consider conducting a pay review when the minimum wage changes. Our payroll services team can help you model the impact.
Ensure your payroll software is updated before the first pay run of each year. Key actions include updating hourly rates for affected employees, reviewing contracts where rates are stated, checking age-band rates for employees recently turning 18, 19, or 20, and verifying the employer PRSI threshold.
Certain sectors have higher minimum pay rates through Employment Regulation Orders (EROs), including security, contract cleaning, and parts of the hospitality industry. You must pay whichever rate is higher: the national minimum wage or the applicable ERO rate.
Check the WRC website for current EROs in your sector. Paying the national minimum wage when a higher ERO rate applies is a compliance breach.
The Irish Government has committed to introducing a national living wage by 2029, set at 60% of the median wage. Annual minimum wage increases will continue in the interim. Employers who proactively move toward living wage pay levels will be better positioned for the transition and may benefit from improved retention and lower recruitment costs.
The national minimum wage in Ireland from 1 January 2026 is €14.15 per hour for employees aged 20 and over. Workers aged 18 and 19 receive €11.32 and €12.74 respectively. Workers under 18 are entitled to €9.91 per hour.
Yes. Employers must pay at least the applicable rate to all workers, including those on work experience, work trials, and internships. The only exceptions are close relatives and statutory apprentices.
You may apply to the Labour Court for a temporary exemption lasting 3 to 12 months. A majority of affected employees must agree, and you must demonstrate the alternative is layoffs.
Divide gross pay (excluding overtime premiums, tips, and pension contributions) by total hours worked in the pay reference period. The result must meet or exceed the applicable rate. Contact our employment advice team for a compliance review.
You cannot reduce hours purely to avoid a minimum wage increase. A reduction in hours must come with a corresponding reduction in duties. Reducing hours without reducing duties could be treated as victimisation.
Explore more of our guides to Irish employment law and employer obligations:
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