Key Employment Law Changes Coming in 2026: What Employers Need to Know
As we approach the end of 2025, Irish employers should prepare for a number of significant employment law changes taking effect throughout 2026. Below, we outline the major developments, key dates, and emerging legislative trends that we will continue to monitor closely over the coming year.
January 2026
Auto-Enrolment Scheme – My Future Fund (MFF)
From 1 January 2026, employees will be automatically enrolled in MFF if they:
- Are aged 23 to 60,
- Earn over €20,000, and
- Are not already members of an occupational pension scheme.
Both employer and employee contributions will begin at 1.5%, increasing by 1.5% every three years until reaching 6% in year ten.
Earlier this month, Minister for Social Protection Dara Calleary highlighted concerns about employers potentially enrolling staff in inferior schemes to avoid MFF. As a result, the Department of Social Protection is considering mandatory minimum contribution levels for occupational pension schemes, to apply from 1 January 2026. The proposed minimum total contribution rate is 3.5%, made up of:
- At least 1.5% from the employer, and
- The remaining 2% from the employer and/or employee.
Employer registration for MFF is now open, allowing companies to input business details and set up payment methods via the employer portal.
This area is developing rapidly, and with the January deadline approaching, further updates are expected before year-end.
National Minimum Wage (NMW)
From 1 January 2026, the NMW will increase by €0.65 to €14.15 per hour.
The National Living Wage (NLW), set at 60% of the median wage, will not reach full implementation until 2029. It will be phased in gradually, with annual NMW increases expected to narrow the gap between the NMW and NLW.
Statutory Sick Pay (SSP)
The SSP entitlement will remain at 5 days per calendar year in 2026.
Although the Sick Leave Act 2022 provided for an increase to 7 days in 2025 and 10 days in 2026, the Government has postponed the expansion due to employer cost pressures.
SSP continues to be paid at 70% of gross wages, capped at €110 per day.
Revenue Commissioners Disclosure Opportunity
Employers have until 30 January 2026 to voluntarily disclose payroll tax issues for 2024 and 2025 relating to the genuine misclassification of employees as contractors, without interest or penalties.
After this date, if liabilities are identified through Revenue compliance activity, full tax, interest, and penalties will apply.
June 2026
EU Pay Transparency Directive
Ireland must transpose the EU Pay Transparency Directive into national law by 7 June 2026. Key requirements include:
- Employers must establish pay structures guaranteeing equal pay for equal work or work of equal value.
- Enhanced gender pay gap reporting, broken down by categories of workers and covering a broader definition of “pay”.
- Mandatory equal pay audits will be required where a gender pay gap of at least 5% exists in any category and remains unresolved six months after reporting.
- Pay secrecy clauses prohibited.
Employees may request:
- Their individual pay level, and
- The average pay levels by gender for comparable roles.
- Employers must indicate the initial pay level or range in job advertisements or before interview.
- Employers will be prohibited from requesting pay history from job applicants.
Ireland does not yet have draft legislation in place, although the legislative programme confirms that the Heads of Bill are being prepared.
Related Developments: Equality (Miscellaneous Provisions) Bill 2024
The General Scheme published in January 2025 proposes:
- A new discrimination ground: socio-economic status.
- Extending the time limit for discrimination claims from 6 to 12 months.
- Increasing compensation under the Equal Status Act from €15,000 to €75,000.
- Allowing the WRC to hear discrimination claims against licensed premises (currently District Court only).
- Removing the provision permitting differential pay rates for disabled persons on productivity grounds.
The General Scheme is still under review, and it remains to be seen which elements will progress into law.
August 2026
EU Artificial Intelligence Act (AI Act)
Recent European Commission proposals indicate that parts of the AI Act may be delayed until 2027, especially those relating to high-risk AI systems used in:
- Recruitment,
- Employee monitoring, and
- Performance management.
Originally, phased commencement was expected to begin in August 2026, but high-risk employer-facing obligations now appear likely to apply from December 2027. The delay aims to ensure that standards and technical guidelines are finalised before implementation.
December 2026
Platform Workers Directive
The Platform Workers Directive (Directive (EU) 2024/2831) must be transposed into Irish law by 2 December 2026.
Key features include:
- A presumption of employment where evidence suggests that a digital platform exercises “direction and control” over a worker.
- National processes to challenge and rebut the presumption.
- Greater transparency of algorithmic management systems.
Given the Supreme Court’s decision in Karshan (Midlands) Ltd v Revenue Commissioners (2023), which redefined the Irish approach to determining employment status through a five-step test, any Irish implementing legislation will likely reflect the Karshan framework.
Watch This Space…
Employment (Contractual Retirement Ages) Bill 2025
As of November 2025, this Bill has reached the fifth stage of the Dáil.
Key provisions include:
- Employers relying on a contractual retirement age below the State pension age (currently 66) must:
- Document employee notifications, and
- Issue reasoned, written responses within one month.
- Employers must demonstrate that any mandatory retirement age is objectively and reasonably justified and proportionate.
The Bill, as drafted, diverges from the Supreme Court’s 2024 judgment in Mallon, which removed the requirement to justify a mandatory retirement age for the individual employee. It remains to be seen whether this inconsistency will be addressed as the Bill progresses.
Collective Bargaining
On 5 November 2025, the Department of Enterprise, Tourism and Employment published Ireland’s Action Plan to Promote Collective Bargaining 2026–2030, developed in cooperation with ICTU and Ibec.
Under the EU Adequate Minimum Wages Directive (2022/2041), Member States with collective bargaining coverage below 80% must introduce enabling conditions. The Plan includes:
- Public awareness campaigns,
- A new Code of Practice,
- Exploration of tax incentives for union membership,
- Targeted research on the benefits of collective bargaining.
Link to document here:
Conclusion
2026 will be a major year for employment law reform in Ireland, introducing new obligations across pensions, pay transparency, taxation, equality law, AI regulation, retirement ages, and worker classification.
If you require more information on this key change to retirement in Ireland, please contact HRP Group on 01 676 0006 or email info@hrpgroup.ie
This article is provided for information purposes only and does not constitute legal advice. Specific advice should be obtained in relation to individual circumstances.
