Budget 2026 – Labour Costs Concerns Persist

Minister for Public Expenditure, Jack Chambers and Minister for Finance, Paschal Donohoe have delivered their Budget 2026 speeches outlining only minimal changes to employment-related measures.

A predicted increase to the minimum wage rate was confirmed along with a VAT reduction for food and catering businesses as well as hairdressing services.

One of the biggest concerns for Organisations will likely be how to absorb the increased labour costs associated with pension auto-enrolment which will take effect in January 2026. Employers not already offering workplace pensions will need to assess both the financial impact and the administrative effort required to implement and manage the new scheme in the coming year.

For further details of the employment-related changes of if your Organisation needs advice, support, or guidance about managing increased labour costs, workforce planning, auto-enrolment, compliance requirements, or any HR issues, please contact Adare by calling (01) 561 3594 or emailing info@adarehrm.ie to learn what services are available to support your business.