Ireland Payroll Changes - 2026

1. Minimum salary/Wage changes

• National minimum wage will increase by €0.65, reaching €14.15/hour from 1 January 2026.
• 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.

2. 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

3. 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.