The 2026 National Minimum Wage Increase
On 1 January 2026, the National Minimum Wage (NMW) increased by €0.65. The minimum rate of pay moved from €13.50 to €14.15 per hour.
To remain compliant with Irish employment legislation, employers should ensure that their payroll systems and employee contracts have been updated to reflect these changes.
What is the National Minimum Wage?
The National Minimum Wage Act 2000 requires all employers to pay employees the minimum hourly pay rate.
The National Minimum Wage applies to full-time, part-time, temporary and casual employees, as well as seasonal workers. There are some exceptions, but these should be dealt with on a case-by-case basis.
This update was announced in Budget 2026, and officially came into place on 1 January 2026. Businesses should ensure that they are up to date with the increase and that they have made any necessary payroll adjustments.
Does the National Minimum Wage apply to all sectors?
In certain sectors, there are different minimum rates of pay in place.
For example, the new Sectoral Employment Order (Construction Sector) 2024 came into effect on 1 August 2025, setting out specific pay increases for the construction sector. From 1 August 2026, construction workers will benefit from a further increase to their minimum hourly pay rate, as well as enhanced minimum pension contributions and sick pay entitlements.
Separately, under the latest Employment Regulation Order (ERO) in the contract cleaning sector, the minimum rate of pay for contract cleaners increased from €14.10 to €14.80 per hour on 1 January 2026.
How does the National Minimum Wage affect Irish businesses?
This increase to the National Minimum Wage, along with upcoming legislative changes such as pension auto-enrolment, may put additional financial strain on Irish businesses in 2026.
Our 2025 global survey revealed that rising costs were a top concern for businesses over the past year, with many citing payroll costs as a specific concern.
With further payroll costs now in place for 2026, it’s important that companies make sufficient payroll adjustments and factor these costs into their long-term budget.
How can Peninsula help?
Our advisors can answer any questions you have in relation to the National Minimum Wage, and the steps you should take to remain compliant.
As a trusted HR and Health & Safety consultancy, Peninsula serves thousands of small businesses across Ireland.
Peninsula clients receive bespoke workplace documentation and policies that are regularly updated in line with any changes in employment law. They also benefit from 24/7 employer HR advice supported by a litigation representation team should you suffer a Workplace Relations Commission claim.
