National minimum wage due to increase in 2027
The CSNA has warned that the planned €14.94 national minimum wage will place further pressure on retailers, with rising employment costs likely to impact staffing levels, opening hours and entry-level jobs for younger workers
Print8 October 2026
We are disappointed with the announcement in yesterday’s budget that the national minimum wage (NMW) is scheduled to rise to €14.94 in January.
Industry bodies made clear to the Low Pay Commission (LPC) this year that this increase is far ahead of both CPI and the general trend in wage inflation.
There are obvious technical issues with the age and quality of the data being used by the Commission in coming to its recommendations. These must be addressed.
The NMW is already so high that businesses are controlling labour cost via automation, reduced customer service, and reduced hours.
A €14.94ph minimum wage will amount to €30,298 per annum, which will gross to €33,603 per annum for the employer once PRSI and AE are included.
Increases in the NMW impact hours worked by employees, meaning the “P60 value” of NMW increases is not the same as the increase in the hourly rate. Even the ESRI has acknowledged this is true.
The LPC needs to retain the youth rates. If they do not, employers will not hire young people for entry-rate jobs at a gross cost over €33,000 per year.
Employers understand the cost of living issues for their employees, but increasing the NMW to try to fix this is pointless when customers are unwilling to bear the cost. Rents and energy costs must come down to address the cost of living.
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