The lowdown on this year’s biggest employment developments
From minimum wage rises to pensions and pay transparency, Moira Grassick outlines the legal developments all employers should know
Along with sales projections, operational decisions and business costs, it is important that business owners keep up to date on new and upcoming changes to employment legislation.
Staying ahead of these developments will not only help ensure there is no last-minute panic when the time comes to update policies and documents, it will also protect your business against the potential legal, financial and reputational consequences of non-compliance.
Here are some of the biggest employment law updates you should be aware of this year.
National minimum wage increase
On 1 January 2026, the National Minimum Wage increased from €13.50 to €14.15 per hour.
Where applicable, your employment contracts should be updated to reflect these changes.
Pension auto-enrolment
Ireland’s new pension auto-enrolment scheme, My Future Fund, launched on 1 January 2026. Employees aged between 23 and 60, who earn more than €20,000 a year and don’t currently contribute to a pension scheme through payroll, will automatically be enrolled.
Salary thresholds for employment permits
To get an employment permit in Ireland, relevant employees must earn a minimum salary. These minimum salaries are due to change from 1 March 2026.
The salary threshold for general employment permits will increase from €34,000 to €36,605.
The threshold for critical skills employment permits will increase from €38,000 to €40,904, and the minimum salary for meat processors, horticultural workers, healthcare assistants and home carers will increase from €30,000 to €32,691.
It is vital that employers stay up to date on their legal obligations regarding employment permits and the relevant thresholds that apply.
The EU Pay Transparency Directive
The European Union’s Pay Transparency Directive is due to be transposed into Irish law by June 2026. Once transposed, this legislation will impact the recruitment process for both employer and employee.
For example, it will determine how and when employers must communicate salary details during the recruitment process and will likely place a ban on pay secrecy in the workplace.
Keep an eye out for any updates on this topic; it’s likely to cause quite a stir!
Gender pay gap reporting
Companies with 50 or more employees were required to publish their gender pay gap reports in November 2025. This is an annual obligation, so it’s important that businesses stay on top of the snapshot dates and reporting deadlines for 2026.
It will also be important to keep an eye out for any changes to the reporting requirements that may occur once the EU Pay Transparency Directive is transposed into Irish law.
The EU Artificial Intelligence Act
On 2 August 2026, the majority of remaining regulations under the EU’s Artificial Intelligence (AI) Act will come into force, and enforcement will begin.
Businesses that use, develop, provide, import or deploy AI products should stay ahead of this deadline and ensure all relevant systems are compliant with EU regulations.
The Employment (Contractual Retirement Ages) Bill 2025
The Employment (Contractual Retirement Ages) Bill 2025 will allow employees to remain in employment until the State Pension Age (66), even if the retirement age set out in their employment contract is lower than this.
The Bill recently passed the fifth and final stage of debate in the Dáil and was signed into law by the President of Ireland on 16 December 2025.
The Equality (Miscellaneous Provisions) Bill 2025
The Equality (Miscellaneous Provisions) Bill 2025 is currently being debated in the Seanad and would prohibit discrimination based on a person’s socio-economic background.
Keep an eye out for updates on this upcoming piece of legislation as it passes through the various stages of debate within Government.
Moira Grassick is Chief Operating Officer at Peninsula