The national minimum wage is going up by 79 cent an hour from 1 January 2027. Here is what it costs, who it affects and what to update before your first pay run of the year.
Key points for employers
- ReportedAdult minimum wage moves from €14.15 to €14.94 an hour from 1 January 2027.
- ReportedA 39 hour week rises from €551.85 to €582.66 gross, up €30.81.
- ConfirmedUSC band widened so full-time minimum wage staff stay at the 2% rate.
- ReportedThe move to a living wage is expected to be delayed again.
- ConfirmedEmployer PRSI lower rate now applies up to €600 a week, up from €552, saving around €650 to €700 per employee a year.
What the new rate costs you
| Hours a week | Weekly pay at €14.15 | Weekly pay at €14.94 | Extra per year |
|---|---|---|---|
| 20 | €283.00 | €298.80 | €821.60 |
| 30 | €424.50 | €448.20 | €1,232.40 |
| 39 | €551.85 | €582.66 | €1,602.12 |
Gross pay before employer PRSI. Annual figures assume 52 paid weeks.
For a business with 20 full-time staff on the minimum wage, that is roughly €32,000 a year in extra gross pay before employer PRSI is added. Build it into your 2027 labour budget now rather than in January.
The employer PRSI offset
To soften the cost, the Government is raising the weekly pay threshold for the lower rate of employer PRSI from €552 to €600 from next year. A full-time worker on €14.94 earns €582.66 a week, so they stay under the new threshold and you pay the lower employer rate on their pay.
RTÉ reports the saving at around €650 to €700 per employee a year. That offsets a good part of the €1,602 increase in gross pay for each full-time minimum wage worker.
It is not only minimum wage staff
When the floor rises, the gap between new starters and the people who supervise them shrinks. If a team leader is on €15.25 an hour, they are now only 31 cent ahead of the people they manage. Review anyone paid within about €1 of the new rate and decide whether to adjust pay differentials.
If you pay any trainee or age-related rates, check them against the new figures too.
Your checklist before 1 January
- Update hourly rates in your payroll and rostering systems for the first pay period of 2027.
- Review pay for staff within €1 of the new rate and agree any differential changes.
- Update offer letter templates, job adverts and contracts that quote an hourly rate.
- Re-run your 2027 wage budget, using the lower employer PRSI rate for staff earning up to €600 a week.
- Tell affected staff in writing what their new rate is and when it starts.
- Keep records of hours worked. A WRC inspection will ask for them.
What about the living wage?
The Government had planned to replace the minimum wage with a living wage set at 60% of median wages. Reports on Budget day suggest that move is being pushed back again. We will update this page when a new timeline is confirmed.
More on Budget 2027 for employers
Back to the Budget 2027 live hub
Sources and how we check figures
Figures are from the Budget speeches and Budget day reporting. Items marked Reported should be checked against the final Budget documents on gov.ie and Revenue guidance. This page is general information, not legal, tax or financial advice.