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Dec 21, 2025

Government scales back 2026 pay rise plan for work-permit holders

Government scales back 2026 pay rise plan for work-permit holders
The Department of Enterprise has performed a last-minute rethink on how quickly it will raise the minimum salaries required for employment-permit renewals. Enterprise Minister Peter Burke confirmed on 20 December that the baseline for a General Employment Permit will increase by just 7.66 % to €36,605 on 1 March 2026 instead of the 14.7 % jump previously scheduled. Critical-Skills Permits will rise by the same percentage to €40,904, while phased hikes for meat-processing, horticulture and home-care roles will now stretch to 2030.

Officials say the softer roadmap balances business-cost pressures with the need to keep Ireland attractive to international talent. Employer groups had warned that steeper hikes could force companies either to redraw entire pay scales or to let permits lapse, jeopardising projects in construction, ICT and life sciences. Permit applications have quadrupled since 2016 and the State processed roughly 25,000 new and renewed permits in 2025, but issuance has already fallen 25 % this year as companies wait for clarity.

Advocates for migrant workers are disappointed. They argue that the moderated thresholds leave overseas staff earning far below the national average industrial wage of €58,000 and reduce momentum towards wage parity with resident workers. Trade unions say the move also weakens Ireland’s hand in the global contest for skills, pointing out that the UK raised its skilled-worker salary floor to £38,700 (€45,000) this month.

Government scales back 2026 pay rise plan for work-permit holders


Whether you are a multinational HR team or an individual employee trying to understand these shifting benchmarks, VisaHQ can simplify the permit-renewal journey. Our Ireland-specific platform (https://www.visahq.com/ireland/) tracks the latest salary thresholds, documentation requirements and processing timelines, and offers hands-on support so applications are filed correctly the first time—helping you stay compliant and avoid costly delays.

For mobility and HR managers the immediate implication is positive: renewals due in 2026 will be easier to budget for and less likely to trigger involuntary exits. However, companies should track indexation rules baked into the new roadmap—future renewals must still reflect Central Statistics Office earnings data, meaning annual uplifts of roughly 4-7 % could reappear from 2027 onward.

The Department will open a short public-consultation window in January before the statutory order is signed. Employers hoping for occupation-specific concessions—especially in healthcare and advanced manufacturing—should prepare evidence on recruitment difficulties and international benchmarking.
VisaHQ's expert visas and immigration team helps individuals and companies navigate global travel, work, and residency requirements. We handle document preparation, application filings, government agencies coordination, every aspect necessary to ensure fast, compliant, and stress-free approvals.
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