Employment legislation in 2026 will bring significant developments, aligning Irish law with EU directives and introducing new employee protections. Here’s a snapshot of what’s coming and how to prepare.
Pension Auto-Enrolment (“My Future Fund”)
Full implementation begins on 1 January 2026. All employers should register on the portal. The Department of Social Protection (DSP) intends to introduce 3.5% minimum total contribution, with at least 1.5% funded by the employer and the remaining 2% paid by either the employer or the employee. The DSP will prohibit reduced contribution rates for probationary or temporary employees, requiring all employees to receive at least the My Future Fund-equivalent contribution from the start of employment. Watch our latest webinar recording for more information.
Minimum Wage Increase
Effective 1 January 2026, the national minimum wage increased to €14.15 per hour. The living wage target has been deferred to 2029.
Statutory Sick Pay (SSP)
Statutory Sick Pay is expected to remain at 5 days paid at the same rate of 70% of daily rate up to €110 per day.
Gender Pay Gap Reporting & Pay Transparency
Preparation for the EU Pay Transparency Directive is ongoing and expected implementation is by 7 June 2026. This Directive will bring stricter pay-disclosure obligations (salary ranges, pay structure transparency, rights for workers to request pay info).
Proposed changes in the Equality (Miscellaneous Provisions) Bill 2024 include prohibiting employers from asking pay-history of applicants, extending time limits for discrimination claims and increasing compensation caps.
Employment Permit Salary Thresholds
Further increases in the minimum annual remuneration (MAR) for employment permits are expected in 2026 (continuing the 2025 increases). This will have recruiting implications for non-EEA workers, especially in sectors dependent on work permits.
Employment (Contractual Retirement Ages) Bill 2025
Once enacted, this bill delivers a statutory provision which sets out that an employer may not enforce a contractual retirement age which is below the State Pension Age.
AI Regulation (EU AI Act)
Employers should prepare for full compliance with the EU AI Act by August 2026. Key steps include:
- Mapping all AI tools
- Conducting risk assessments
- Implementing human oversight
- Ensuring transparency for employees
- Updating vendor contracts
- Training staff on AI governance
At Voltedge Management, we understand the importance of updating your policies in accordance with evolving legislation. Contact us today at info@voltedge.ie or 01 525 2914 to learn more about how we can assist in updating your policies.
Liz O’Donovan, Voltedge Management Senior HR Consultant & Professional Services Manager
