Employment legislation in 2026 will introduce a range of significant developments for Irish employers. Many of these changes stem from EU directives and national policy commitments, with a strong emphasis on fair pay, transparency, workforce protection and responsible use of technology. Employers should take steps early to understand their obligations and prepare their policies, contracts and systems accordingly.
Pension Auto Enrolment and My Future Fund
Pension auto enrolment under My Future Fund will be fully implemented from 1 January 2026. All employers will be required to register on the scheme portal and ensure eligible employees are enrolled. The Department of Social Protection plans to introduce a minimum total contribution rate of 3.5 per cent. At least 1.5 per cent must be paid by the employer, with the remaining 2 per cent paid by either the employer or the employee.
Reduced contribution rates for probationary or temporary employees will not be permitted. This means that from the start of employment, all eligible employees must receive at least the My Future Fund equivalent contribution.
Minimum Wage and Statutory Sick Pay
The national minimum wage increased to €14.15 per hour from 1 January 2026. While this increase moves Ireland closer to the living wage, the target date for full alignment has been deferred until 2029. Employers should ensure that payroll systems and contracts reflect the updated rate.
Statutory Sick Pay is expected to remain unchanged in 2026. Employees will continue to be entitled to five days of paid sick leave per year, paid at 70 per cent of their normal daily rate, subject to a maximum of €110 per day.
Gender Pay Gap Reporting and Pay Transparency
Preparation for the EU Pay Transparency Directive is ongoing, with implementation expected by 7 June 2026. The Directive will introduce enhanced pay disclosure obligations, including requirements to publish salary ranges, improve transparency around pay structures and allow employees to request pay information.
Proposed amendments under the Equality (Miscellaneous Provisions) Bill 2024 also include a prohibition on asking candidates about their pay history, extended time limits for bringing discrimination claims and increased compensation limits.
Immigration, Retirement and AI Regulation
Further increases to minimum salary thresholds for employment permits are expected in 2026, continuing the upward trend seen in recent years. These changes may present recruitment challenges for employers who rely on non EEA workers.
The Employment (Contractual Retirement Ages) Bill 2025, once enacted, will prevent employers from enforcing a contractual retirement age below the State Pension Age. Employers should review existing retirement clauses in advance.
Employers must also prepare for full compliance with the EU AI Act by August 2026. Key actions include mapping AI tools in use, conducting risk assessments, ensuring appropriate human oversight, updating vendor contracts, providing transparency to employees and delivering training on AI governance.