Minimum Wage Increase 2025 in Ireland: €13.50 Rate Details

For workers earning the national minimum wage in Ireland, 2025 marks a real shift. The rate climbed to €13.50 per hour from €12.70, a €0.80 boost that took effect on 1 January — the largest annual increase in recent years. Below is a guide to who qualifies, how the age-based tiers work, what happens next in 2026, and how Ireland’s approach stacks up against the UK’s still-unconfirmed plans for the National Living Wage.

Ireland NMW Jan 2025: €13.50/hour · Ireland NMW Jan 2026: €14.15/hour · Living Wage 2025/26: €15.40/hour · Increase from 2024: €0.80

What is the minimum wage in Ireland 2025?

Ireland’s national minimum wage for workers aged 20 and over rose to €13.50 per hour on 1 January 2025, up from €12.70 the previous year (Remote). That represents an increase of €0.80 — roughly 6.3% — and applies to all full-time, part-time, temporary, and seasonal employees covered under the National Minimum Wage Act (MSS The HR People).

Hourly rate from 1 January 2025

The headline rate covers adults aged 20 and over. Younger workers receive reduced percentages under statutory tiers set by the Workplace Relations Commission:

• Age 20+: €13.50 per hour (full rate)
• Age 19: €12.15 per hour (90% of full rate)
• Age 18: €10.80 per hour (80% of full rate)
• Under 18: €9.45 per hour (70% of full rate) (MSS The HR People)

These percentages are set in law under S.I. No. 472 of 2025 — the National Minimum Wage Order 2025 (Workplace Relations Commission). Employers who pay below the applicable rate risk breaches of employment law.

What counts as pay

Not every benefit counts toward the minimum wage threshold. Under Irish law, reckonable pay — what counts toward the minimum — includes basic wages, shift premiums, commission, productivity bonuses, and service charges processed through payroll (MSS The HR People). Non-cash perks such as gym memberships, wellness benefits, or remote-work allowances generally do not factor into the calculation.

For board and lodging provided by the employer, the Workplace Relations Commission sets cash offsets: in 2025, board is valued at €1.21 per hour, while accommodation allowance runs €4.55 per day (DLA Piper). Employers using these deductions must ensure the employee’s total cash earnings still meet the minimum threshold.

The implication: whether the minimum wage applies to you depends not just on your age and gross pay, but on your employment category, the collective agreements governing your sector, and how your employer structures any non-cash benefits.

Exemptions to the national minimum wage

Certain workers fall outside the scope of the national minimum wage. The main exemptions under Irish employment law include family members of the employer working in the family business, and specific categories of apprentices registered under recognised training programmes (MSS The HR People). If you believe you may be misclassified, the Workplace Relations Commission provides a free conciliation and adjudication service.

Additionally, sectoral minimum rates set through Sectoral Employment Orders or Employment Regulation Orders may apply in industries such as contract cleaning, security, and childcare — and these can differ from the national floor (Workplace Relations Commission).

Is the minimum wage going up in Ireland in 2026?

Yes. On 1 January 2026, Ireland’s national minimum wage rises to €14.15 per hour for workers aged 20 and over (gov.ie). That represents an increase of €0.65 from the 2025 rate — slightly smaller in absolute terms than the 2024-to-2025 jump, but still a meaningful advance.

New rate on 1 January 2026

The age-tier structure carries forward into 2026 with adjusted rates:

• Age 20+: €14.15 per hour
• Age 19: €12.74 per hour
• Age 18: €11.32 per hour
• Under 18: €9.91 per hour (Workplace Relations Commission)

Board and lodging offsets also increase: meals €1.27/hour, accommodation €33.42/week or €4.77/day for 2026 (Workplace Relations Commission). Employers using these offsets should update their payroll systems before the new year.

Roadmap to 2027 and beyond

The government has committed to reaching a living wage of 60% of median earnings by 2026, and the minimum wage increases planned through 2025 and 2026 move in that direction (Remote). For 2027, no confirmed rate has been published as of early 2026 — the Low Pay Commission’s next report will inform the next adjustment cycle.

What this means: workers on the minimum should expect continued incremental increases through the decade, but exact figures for 2027 and beyond depend on economic conditions and Low Pay Commission recommendations that are not yet public.

What will be the minimum wage in the UK in 2025?

The UK’s National Living Wage for workers aged 21 and over remains to be confirmed for 2025 at time of writing, with the Low Pay Commission expected to issue its annual recommendation and the government to announce the official rate in the spring budget cycle (GOV.UK). The UK rate has historically tracked closely with its median-earnings-to-floor ratio, which differs from Ireland’s 60%-median target.

National Living Wage rates

For reference, the UK National Living Wage as of April 2024 was £11.44 per hour for workers aged 21 and over, with the apprentice rate at £6.40. The government’s stated ambition is to reach two-thirds of median earnings by 2024 — a target that has repeatedly shifted.

Comparison to Ireland

The practical gap between Irish and UK minimum wages depends heavily on currency exchange rates and purchasing power parity. At parity, Ireland’s 2025 rate of €13.50 exceeds the UK’s last confirmed £11.44 — though the UK’s 2025 figure could narrow that difference once announced. Cross-border workers, particularly those in Northern Ireland, face the most direct comparison challenge.

The pattern: both jurisdictions are gradually raising their floors, but Ireland’s explicit 60%-median target gives its trajectory a clearer, published anchor than the UK’s more politically variable approach.

What is the Living Wage rate for 2025/26 in Ireland?

Ireland’s Living Wage for the 2025/26 period sits at €15.40 per hour, according to calculations from the Living Wage Technical Group and published on budgeting.ie (Budgeting.ie). That represents a rise of €0.65 — approximately 4.4% — from the previous figure of €14.75.

Difference from the national minimum wage

The gap between the statutory minimum and the living wage matters for low-income workers. For 2025, the difference is €1.90 per hour (€15.40 minus €13.50), widening to €1.25 once the minimum reaches €14.15 in 2026. This spread reflects the shortfall between the legal floor and what the Living Wage Technical Group calculates as necessary for a basic but decent standard of living.

Annual adjustment

The Living Wage is recalculated annually based on the cost of a basket of goods and services representing a minimum acceptable standard of living. Unlike the national minimum, which the government adjusts through social partnership and Low Pay Commission advice, the Living Wage responds to and spending data tracked throughout the year.

The trade-off: workers relying solely on the national minimum will continue to fall short of what the Living Wage Technical Group deems necessary for financial stability, even as the floor rises.

What is 40 hours a week on minimum wage?

For a full-time worker on the national minimum wage, a standard 40-hour week at the 2025 rate of €13.50 per hour yields €540 gross per week — before tax, PRSI, or universal social charge. Annualised, that comes to roughly €28,080 gross (assuming 52 weeks of pay). By comparison, a 39-hour week — the standard reference used by the Department of Enterprise — brings the annual figure to approximately €27,378 (EIG Law).

Here is how the main earnings scenarios break down for 2025:

• 40 hours at €13.50: €540/week gross
• 39 hours at €13.50: €526.50/week gross
• Annual (40-hour basis): approximately €28,080 gross

Annual salary estimate

Take-home pay depends on individual circumstances — tax credits, PRSI class, and any pension contributions all affect net pay. For a single worker with standard tax credits, the effective marginal rate on additional earnings from a minimum wage increase can feel steeper than the headline percentage suggests, since moving from no income to minimum wage pulls a worker into the PAYE system fully.

Tax considerations

The increase to €13.50 has knock-on effects on employers: higher PRSI contributions, increased holiday pay liability, and potential overtime recalculations (ifac). For employees, the extra gross income may move them into a higher tax band, though the increase is typically modest at minimum wage levels.

The net benefit of the gross increase is shaped by Ireland’s tax credit structure and the timing of payroll adjustments by employers — workers should not assume the full €0.80 translates to take-home pay.

Related reading: What is Pension Credit · What Is a Tariff

Ireland’s national minimum wage climbs to €13.50 per hour from 1 January 2025, where April 2025 updates detail union pushes for more.

Frequently asked questions

Summary

Ireland’s national minimum wage sits at €13.50/hour in 2025, climbing to €14.15 on 1 January 2026 — two concrete steps toward the government’s stated goal of a living wage at 60% of median earnings. For employers, the picture is clear: payroll costs are rising, and recalculating reckonable pay, PRSI contributions, and holiday pay entitlements is not optional. For employees on the floor, the increase is real and welcome, but the gap to a living wage of €15.40 remains substantial — and housing costs in particular mean that €13.50 does not yet buy the security the headline figure implies.