Minimum salary/Wage changes
- USC (Universal Social Charge) 2% band threshold will increase to €28,700 (from €27,382) starting 1 January 2026.
- This adjustment ensures that minimum wage workers will not move into the 3% USC band.
Rate/Percentage changes affecting payroll
- PRSI increase (employee + employer)
- +0.1% from 1 October 2025
- Brings Class A rate to:
- Employees - 4.2%
- Employers - 11.25%
- Future scheduled PRSI increases (as per legislation):
- +0.15% - 2026 & 2027
- +0.2% - 2028
Other payroll-impacting changes
Auto-enrolment pension scheme - from 1 January 2026
- Employees not contributing to an existing pension may be automatically enrolled into the new scheme MyFutureFund.
- Contributions will be made by employee + employer + government.
- Employees may opt out after 6 months and receive a refund of their own contributions.
- Employers can register via the MyFutureFund employer portal.
Automatic enrolment applies if the employee:
- Is aged 23-60.
- Is not already paying into a pension through payroll.
- Earns €20,000+ per year (all jobs combined) or earns €5,000+ within any 13-week period.
