Ireland HR & Payroll Key Changes for 2026

Ireland HR & Payroll Newsletter

August 2026

Keeping Irish employers up to date with key HR, payroll and employment developments

Welcome to the August 2026 edition of our Ireland HR & Payroll Newsletter.

This month’s edition focuses on developments and information published by the Government of Ireland and the CIPD in Ireland, with particular attention to payroll, auto-enrolment, minimum wage, employment permits and current HR priorities.

Payroll Update

MyFutureFund – Auto-Enrolment Retirement Savings

MyFutureFund commenced on 1 January 2026.

The Government’s auto-enrolment retirement savings system requires eligible employees who do not already have a qualifying pension arrangement to be automatically enrolled.

For the first three years of the scheme, 2026–2028, the contribution rates are:

The Government describes the State contribution as a top-up of €1 for every €3 contributed by the employee.

The contribution rates are scheduled to increase over time.

Payroll consideration: Employers should ensure that their payroll processes are able to correctly administer employee and employer contributions under MyFutureFund.

Official source:
Government of Ireland — MyFutureFund

Government of Ireland — Auto-enrolment retirement savings system for employers

National Minimum Wage

The National Minimum Wage increased on 1 January 2026.

The current statutory rates are:

The Government confirms that the National Minimum Wage applies to most employees, including full-time, part-time, temporary, casual and seasonal employees.

For minimum-wage purposes, gross pay can include elements such as basic salary, shift premiums, bonuses and service charges, subject to the applicable rules.

Payroll consideration: Employers should review employees whose remuneration is close to the statutory minimum and ensure that payroll calculations reflect the applicable minimum-wage rules.

Official source:
Government of Ireland — National Minimum Wage

Payroll & USC

Changes to the USC bands also took effect from 1 January 2026.

The Government increased the ceiling for the 2% USC rate band to €28,700.

The change was introduced alongside the increase in the National Minimum Wage.

Payroll consideration: Payroll teams should ensure that the current 2026 Revenue payroll parameters are being applied when calculating employee deductions.

Official source:
Government of Ireland — Budget 2026 tax changes

Employer PRSI

The employer PRSI weekly threshold increased from €527 to €552 from 1 January 2026.

The Government linked this change to the increase in the National Minimum Wage.

Payroll consideration: Review payroll settings and employer PRSI calculations to ensure the correct 2026 threshold is being applied.

Official source:
Government of Ireland — Budget 2026 Social Protection measures

Statutory Sick Leave

Ireland’s statutory sick-leave scheme has been phased in progressively.

The Government’s published programme provides for the entitlement to reach 10 days of statutory sick leave in 2026.

Statutory sick pay is provided at 70% of gross earnings, subject to a maximum of €110 per day, under the scheme.

The statutory scheme provides a minimum level of protection; employers that already provide a more favourable sick-pay arrangement are not prevented from continuing to do so.

Statutory sick leave is subject to the relevant conditions, including the requirement for appropriate medical certification.

HR & payroll consideration: Employers should ensure their absence policies and payroll processes reflect the applicable statutory entitlement and any more favourable contractual sick-pay arrangements.

Official source:
Government of Ireland — Paid sick leave arrangements

HR Update

 The Role of HR Continues to Strengthen

CIPD Ireland’s HR Practices in Ireland 2025–2026 research provides an insight into how the HR profession is developing.

According to the research:

• 80% reported an improved perception of the HR function.
• 84% recognised HR’s contribution to evidence-based decision-making.
• 67% of HR professionals identified AI for HR as their top professional development priority.

CIPD’s research also highlights the continuing importance of technology, AI and data alongside traditional people priorities.

HR takeaway: The findings demonstrate the growing importance of HR’s contribution to organisational decision-making, while also highlighting the need for HR professionals to develop their capabilities in areas such as technology, AI and evidence-based practice.

CIPD source:
CIPD Ireland — HR Practices in Ireland 2025–2026

AI and HR

AI remains an important issue for HR professionals and employers.

CIPD Ireland’s research identifies AI as a significant area of professional development, while CIPD has also published guidance examining the implications of the EU Artificial Intelligence Act for organisations and people practice.

For HR teams, relevant considerations include how AI may affect:

• recruitment and selection;
• people management;
• employee data;
• decision-making;
• skills development; and
• organisational policies and practices.

CIPD’s guidance emphasises the implications of the EU AI legislation for organisations and people professionals.

CIPD source:
CIPD Ireland — Implications from the EU Artificial Intelligence Act

Employment Permits

Employment permit salary thresholds changed on 1 March 2026.

For most General Employment Permits, the minimum annual remuneration increased to:

€36,605

For Critical Skills Employment Permits, the minimum increased to:

€40,904

The Government also introduced a different threshold for certain occupations, including specified meat-processing, horticultural and healthcare roles.

Lower starting thresholds can also apply to certain recent graduates.

Employers recruiting people who require employment permission should therefore check the applicable occupation, permit type and remuneration requirements before proceeding.

Employment Law: Areas to Watch 

CIPD Ireland’s 2026 employment-law programme identifies a number of areas of importance for HR professionals, including:

• EU Pay Transparency
• Auto-enrolment
• Retirement ages
• Remote and flexible working
• Independent contractors
• Protected disclosures
• Redundancy

These areas reflect the continuing development of the Irish employment-law environment and the need for HR professionals to keep policies and practices under review.

CIPD source:
CIPD Ireland — Employment Law Update 2026

HR & Payroll – Key Figures for 2026

HR & Payroll Checklist

Payroll

• Check that MyFutureFund contributions are being processed correctly.
• Confirm that 2026 National Minimum Wage rates are reflected in payroll.
• Check employer PRSI calculations against the 2026 threshold.
• Confirm that current USC parameters are being used.
• Review statutory sick-pay calculations and absence records.

HR

• Review your statutory sick-leave policy.
• Check employment-permit salary requirements when recruiting non-EEA employees.
• Review HR policies in light of developments in remote and flexible working.
• Consider your organisation’s approach to AI and people management.
• Keep informed about developments relating to EU Pay Transparency.
• Consider how HR data and evidence can support organisational decision-making.

Important note

This newsletter is intended as a general HR and payroll information update. It is not legal, tax or financial advice. Employment and payroll rules can depend on an individual’s or organisation’s circumstances, so employers should consult the applicable legislation and current Government guidance when making decisions.

Information checked against Government of Ireland and CIPD Ireland sources available as of August 2026.