Written answers

Tuesday, 4 November 2025

Department of Enterprise, Trade and Employment

National Minimum Wage

Photo of Eoghan KennyEoghan Kenny (Cork North-Central, Labour)
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610. To ask the Minister for Enterprise, Trade and Employment if his Department will review the operation of the national minimum wage to ensure that it keeps pace with inflation and cost-of-living pressures; and if he will make a statement on the matter. [59043/25]

Photo of Peter BurkePeter Burke (Longford-Westmeath, Fine Gael)
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The Low Pay Commission when making its recommendation for a National Minimum Wage has a statutory obligation to have regard to several factors such as changes in earnings, exchange rates, income distribution and the likely economic effects of any recommendation.

Among its statutory criteria, the Low Pay Commission must consider the effect that any National Minimum Wage recommendation will have on the cost of living in Ireland and as a result is very cognisant of its recommendation in light of current pressures.

The Low Pay Commission considers the effect of the cost of living in a range of ways including:

  • Assessing the determinants of inflation and comparing the change in inflation to the change in wage growth to calculate the real change to average wages.
  • Comparing the value of the National Minimum Wage with the Minimum Essential Standard of Living (MESL) wage calculated by the Living Wage Technical Group. The MESL wage is calculated from a basket of goods and services deemed necessary for a minimum essential standard of living and accounts for the change in prices of the essential goods from year to year. The current National Minimum Wage of €13.50 represents a bite of nearly 92% of the MESL wage.
In 2024 and 2025, there was a significant uplift of 12% (€1.40) in 2024 and of 6% (€0.80) in 2025 in the National Minimum Wage. Both of these increases were well ahead of inflation and wage growth for these periods and have brought about substantial and real wage growth for the lowest paid workers in our economy.

The Low Pay Commission's recommendation for the 2026 National Minimum Wage of €14.15 was accepted by Government as part of Budget 2026 and will come into effect on 1st January 2026. This wage represents a 65 cent, or 4.8 percentage increase from the 2025 National Minimum Wage of €13.50.

This is also expected to be above forecasted wage growth and inflation in 2026, meaning that those on the lowest wages should see real wage growth in 2026.

The Government is aware of concerns about the cost of living and has brought about real increases in the pay of minimum wage workers. We are also aware of employers’ concerns about the high cost of doing business.

The Government is committed to ensuring a balance between a fair and sustainable rate for low paid workers, and one that will not have significant negative consequences for employers and competitiveness.

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