Employment legislation continued to deliver some important developments during 2025. The year delivered more legislative changes, broader employee impacts and focused on greater preparation for large EU-driven reforms. In our latest round up, we will share a brief summary of the key updates:
Pension Auto-Enrolment (“My Future Fund”)
This is largest reform to pensions in Ireland for many years and will impact a significant proportion of the workforce. Preparations have been well underway throughout the year to prepare for the full implementation by 1 January 2026. All employees aged 23–60 years and earning ≥ €20,000 will be auto-enrolled in the scheme with contributions starting at 1.5 % employee and employer contributions, topped by the State.
Minimum Wage Increase
Effective 1 January 2025, the national minimum wage increased to €13.50 per hour. The living wage target has been deferred to 2029.
Statutory Sick Pay (SSP)
Statutory Sick Pay remained at 5 days paid at the same rate of 70% of daily rate up to €110 per day.
Gender Pay Gap Reporting Extension
The reporting requirement is now expanded to include employers with 50+ employees, replacing previous 150+ threshold with the deadline moving to November 2025.
Maternity Leave Flexibility
Employees who become seriously ill during maternity leave may postpone maternity leave (5–52 weeks) with notice and certificate.
EU Gender Balance on Listed Company Boards
The EU Directive (Gender Balance on Boards of Certain Companies) Regulations 2025 sets specific targets for the representation of the underrepresented sex on relevant listed company boards to be reached by 30 June 2026.
Restrictions on Non-Disclosure Agreements (NDAs)
Legislation now prohibits non-disclosure obligations that would prevent an employer or an employee from disclosing information to anyone about allegations of discrimination, harassment, sexual harassment or victimisation, or any steps taken by the employer or the employee in relation to such allegations.
Employment Permits Reform
A number of changes in this area took place during 2025 as the Employment Permits Act 2024 changes come fully into force in 2025. These included the pilot of a new Seasonal Employment Permit (horticulture, agriculture), increase to the minimum annual remuneration thresholds for certain permits and the launch of a new online platform for employment permit applications.
AI Regulation (EU AI Act)
The first provisions of the EU AI Act affecting employment came into effect in February 2025. This Act specifically identifies AI used in recruitment, performance management and KPI evaluation tools as high risk. This means that employers must follow strict rules that go far beyond normal GDPR compliance.
Employers must ensure transparency in decision-making when AI is used, include human oversight, and potentially put in place AI-use policies. There are significant fines for non-compliance (up to €35m or up to 7% of global turnover).
If you have any questions on any aspect of the areas mentioned in this article, please contact us on 01 525 2914 or info@voltedge.ie.
Liz O’Donovan, Voltedge Management Senior HR Consultant & Professional Services Manager
