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Feb 2026 - Public Service Agreement

In February 2026 a general round increase applies:

  • 1% increase to annualised basic salary
    OR
  • €500, whichever is greater

This increase applies to all public servants under the agreement

 

January 2026 - My Future Fund

My Future Fund officially went live on 1 January 2026. NAERSA began collecting contributions from employers and employees.
Please review My Future Fund - Auto Enrolment for details.

 

Budget 2026 – Key Updates

Universal Social Charge (USC) Changes

From 1 January 2026, the following USC updates apply:

  • 2% USC band increased by €1,318, raising the threshold from €27,382 → €28,700.

  • Reduced USC rate for full medical card holders (income ≤ €60,000) extended to end of 2027.


National Minimum Wage Increase (Impacts PAYE Calculations)

The minimum wage rises by €0.65 to €14.15 per hour from 1 January 2026


PAYE Tax Bands & Personal Credits

  • No changes to income tax bands or personal tax credits for 2026.
    PAYE remains at 20% / 40%, with unchanged thresholds.

PRSI Changes

  • October 2025 - PRSI increase for Employee to 4.20% and Employer to 11.25%
  • October 2026 - Increase of 0.15% to 4.35% for Employee and 11.40% for Employer