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What Employers Need to Know About the National Minimum Wage in Ireland

If you are an employer you need to stay up-to-date with the National Minimum Wage rates to ensure your payroll remains compliant.

Updated 19 Feb 2026 | Published 19 Feb 2026

By Gearoid Condon, FCA 3 min read

Payroll Employers

Ireland’s National Minimum Wage (NMW) sets the legal minimum hourly rate that most employees must receive. With annual increases now a regular feature of Budget announcements, it’s essential for employers to stay up-to-date and ensure payroll systems, contracts, and budgeting reflect the latest rates.

Below is a practical overview of what employers need to know:

Current National Minimum Wage Rates (From 01 January 2026)

Age	Hourly Rate
Under 18	€9.91
18 years	€11.32
19 years	€12.74
20 years and over	€14.15

These rates are set by Government following recommendations from the Low Pay Commission.

Who Must Be Paid the Minimum Wage?

The NMW applies to:

Full time and part time employees
Temporary, casual, and seasonal workers
Workers on probation or training (unless covered by a specific exemption)

Who is exempt from the minimum wage?

Close family members of a sole trader employer (e.g., spouse, child, parent)
Statutory apprentices registered under SOLAS

Sector Specific Minimum Rates

Some industries have legally binding minimum pay rates that sit above the national minimum wage. These are set through:

Sectoral Employment Orders (SEOs)
Employment Regulation Orders (EROs)

Examples include the security and contract cleaning sectors.

If an SEO/ERO applies, employers must pay the higher rate.

What counts towards the minimum wage?

Reckonable Pay (Included in the calculation)

Basic pay
Shift premiums
Commission, bonuses, and service charges processed through payroll
Zero hours payments
Board and lodgings (at statutory values)

Non Reckonable Pay (Excluded from the calculation)

Overtime premiums
Sunday premiums
Tips not processed through payroll
Allowances (e.g., on call, standby)
Reimbursement of expenses
Benefits in kind
Payments in lieu of notice

Board and Lodgings Statutory Values (2026)

If you provide meals or accommodation, the following amounts may be included when calculating compliance:

Benefit	Rate
Meals (board)	€1.27 per hour worked
Accommodation (lodgings)	€33.42 per week or €4.77 per day

How do you calculate an employee’s hourly rate?

The minimum wage is assessed over a “pay reference period” (usually weekly, fortnightly, or monthly).

Hourly Rate = Gross Reckonable Pay/Hours Worked

Example 1:

If an employee works 40 hours a week and their gross pay for that week is €600 then the hourly rate is €15.
600/40 = €15

In this example the employee is earning above the National Minimum Wage so the employer is compliant.

Example 2:

If an employee works 40 hours a week and their gross pay for that week is €520 then the hourly rate is €13.
520/40 = €13

In this example the employee is earning below the National Minimum Wage and the employer should take steps to rectify it.

All employers must ensure:

All hours worked are recorded accurately
Only reckonable pay is included
Payroll systems are updated for new rates each January
Employees are paid the NMW or above

What records do employers need to keep?

Employers must keep detailed records for at least three years, including:

Hours worked
Pay rates and pay components
Deductions
Board and lodgings provided (if applicable)

Employees who believe they have been underpaid can make a complaint to the Workplace Relations Commission (WRC), which has the authority to inspect records and issue compliance notices.

What are the key takeaways for employers?

The full adult minimum wage is €14.15 from 1 January 2026.
Age based rates apply for workers under 20.
Sectoral rates may override the national minimum wage.
Only certain pay elements count toward minimum wage compliance.
Accurate time and pay records are essential.
Ensure payroll systems are upadated with new rates when requried

Outsourcing your payroll

In light of the annual increases and the detailed rules around the NMW, employers should take time to review their payroll systems to ensure they remain fully compliant. If payroll administration is becoming increasingly complex or time-consuming, outsourcing to a specialist can provide peace of mind. At TaxAssist Accountants we can support employers with efficient, compliant payroll services, helping you focus on running your business while ensuring your statutory obligations are met. Contact us today to set up a meeting about your payroll.

Need help with your payroll?

Contact TaxAssist Accountants for a free, no-obligation consultation to get a fixed fee quote

1800 98 76 09

Or contact us

Updated 19 Feb 2026 | Published 19 Feb 2026

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Gearoid Condon, FCA

Gearoid is a highly experienced Chartered Accountant with 25 years of expertise in business consultancy, specialising in supporting SME business owners. Gearoid has worked with start-ups and with established businesses to improve the way they run, with particular focus on growth, efficiency, and structuring operations. Through his experience Gearoid has a strong understanding of the tax system and business regulations in Ireland.

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