Budget 2027 includes minimum wage rise from next January

The Government has announced Budget 2027, with a rise in the national minimum wage among the measures being introduced.

A number of business groups expressed concern about the increase from €14.15 to €14.94 per hour, which will come into effect at the beginning of 2027.

The Small Firms Association (SFA) said it was disappointed with the Government’s decision to approve the Low Pay Commission’s full recommendation of a 79-cent increase in the minimum wage.

“The increase in the National Minimum Wage will significantly increase payroll budgets across various pay grades on a pro-rata basis,” said SFA director David Broderick. “When you add the recent increases to statutory sick pay days and auto enrolment, many small businesses will be forced to reduce staff, cut operating hours and halt investments.”

Meanwhile, to offset the impact of the increase in the national minimum wage and to ease labour cost pressure on employers, the Government is increasing the employer PRSI threshold from €552 to €600 per week from 2027.

In his Budget 2027 speech, the Minister for Finance Simon Harris noted that the Government remains focused on ensuring work pays, while supporting businesses that create jobs and economic activity.