Ireland: NMW €13.50/hour & USC Rates for 2026 Tax Year

Effective 1 January 2026 (confirmed by the WRC and Revenue.ie in November 2025), Ireland has raised the National Minimum Wage, recalibrated USC bands, and is moving forward with the phased rollout of pension auto-enrolment.

Effective Date

• 1 January 2026 (in effect)

Published

• WRC / Revenue.ie confirmed November 2025

Key Changes:

• National Minimum Wage: €12.70 → €13.50/hour (+6.3%)
• USC bands: 0.5% up to €12,012; 2% to €27,382; 4% to €70,044; 8% above
• Employer PRSI (Class A): Unchanged at 11.05%
• PAYE thresholds: Indexed for 2026
• AERSS (auto-enrolment pension): Phased launch on track; employer contribution starts at 1.5%

Payroll action

• Confirm NMW is set to €13.50/hour in payroll from 1 January 2026.
• Verify USC bands and rates reflect 2026 Revenue tables.
• Monitor Revenue.ie for AERSS (pension auto-enrolment) implementation timeline , employer contributions start at 1.5%.
• Update PAYE tax credit and standard rate band values for 2026.

revenue.ie