Ibec Publishes its HR Update – Pay and Resourcing Forecast Report 2025

• 80% of businesses expect to increase pay in 2026, with an average increase of 3.1%
• 37% of companies plan to increase headcount in 2026, down from 41% in 2025 and 45% in 2024
• 85% of businesses increased pay in 2025, with respondents reporting an average increase of 3.6% across all sectors

Ibec, the group representing Irish businesses, has today published Part 1 of its annual HR Update – Pay and Resourcing Forecast, focussing on pay data for 2025 and forecasts for next year.

The survey, conducted with over 400 senior HR professionals, reveals that 85% of businesses increased pay in 2025, with respondents reporting an average increase of 3.6% across all sectors. At the same time, 80% of businesses expect to increase pay in 2026, with the average increase projected at around 3.1%. No respondents indicated any expectation of wage decreases in 2026.

Over a third of companies plan to increase their headcount in 2026, down from 41% in 2025 and 45% in 2024. While most new hires will continue to be for permanent roles, the share is expected to fall from 95% in 2025 to a forecasted 89% in 2026.The main drivers of additional headcount are increased production and demand, business expansion, and building a future pipeline of talent.

The sectors that recorded the largest pay increases for this year, averaging 5.2%, were Hotels, Tourism and Leisure. This reflects changes in the minimum wage and ongoing demand for labour within these sectors.

Maeve McElwee, Ibec's Executive Director of Employer Relations, commented:

“We are seeing a slight slowdown in headcount growth, however, the overall number of companies maintaining their workforce remains strong. Whilst employment trends remain positive, employers are increasingly prioritising investment in the labour market to prepare workers with the skills needed for a rapidly evolving employment landscape.

The emphasis on innovation and skills, as set out by Government in this week’s Action Plan on Competitiveness and Productivity, will play an important role in meeting future labour market needs.

In terms of wage growth, despite easing inflation, wages are expected to continue rising, in line with recent trends. This will be largely driven by minimum wage increases and ongoing competition for talent in particular sectors. 

Looking ahead, one of the major challenges for employers will be compliance with the new EU pay transparency rules, which must be transposed into Irish law by June 2026. The lack of detailed guidance is a serious concern for businesses, and Ibec has been urging Government to publish clear employer guidance well ahead of the deadline to support preparation, ensure compliance, and avoid adding unnecessary regulatory or cost burdens beyond EU requirements.”