The Government has confirmed that the national minimum wage will increase to €14.15 per hour from 1 January 2026. The 65 cent rise forms part of Budget 2026 and continues the move towards aligning the minimum wage with the living wage over time.
In line with the increase, the ceiling for the 2 percent Universal Social Charge band will rise by €1,318 to €28,700. Minister for Finance Paschal Donohoe said this adjustment will ensure that full time minimum wage workers remain outside the higher USC rates, while also offering a small benefit to employees earning above that threshold.
The Minister also announced that the reduced USC rate for individuals with a full medical card earning less than €60,000 per year will continue for an additional two years, until the end of 2027.
While noting that the fiscal space for personal tax reform is limited this year, Mr Donohoe reiterated the Government’s commitment to making further progressive changes to income tax over its term, subject to continued economic performance.
