National Living Wage confirmed for 2026
The Government has agreed to introduce a national living wage over a four-year period. A living wage will be in place by 2026, at which point it will replace the National Minimum Wage.
It will be set at 60% of hourly median wages in line with the recommendations of the Low Pay Commission.
The first step towards reaching a living wage will be the increase to the National Minimum Wage from 1st January 2023 to €11.30 per hour. This will be followed by gradual increases to the National Minimum Wage until it reaches 60% of hourly median earnings. In 2023, it is estimated that 60% of median earnings would equate to approximately €13.10 per hour.
Once the national living wage has come into effect in 2026, subject to an assessment of the impact of the change, the Low Pay Commission will advise on the practicalities of gradually increasing the targeted threshold rate towards 66% of the hourly median wage.
The SFA lobbied against the introduction of a living wage and will continue to voice the concerns of small business owners on this matter.