Ireland Payroll Changes 2026: What Employers and Payroll Staff Need to Know

Ireland payroll 2026 at a glance

Here are the main payroll changes Ireland employers and payroll staff should check in 2026.

• The National Minimum Wage increased to €14.15 per hour for workers aged 20 and over from 1 January 2026.
• The 2% USC band increased to €28,700 for 2026.
• Class A PRSI rates increase from 1 October 2026.
• MyFutureFund auto enrolment contributions started from 1 January 2026.
• Payments made in 2026 must use the employee’s 2026 Revenue Payroll Notification.

Why 2026 is an important payroll year in Ireland

Payroll is not just about paying employees on time. It also involves using the right tax year, applying the correct Revenue Payroll Notification, checking minimum wage rates, calculating deductions, keeping accurate records and understanding employee questions.

In 2026, the biggest payroll areas to watch are:

• The National Minimum Wage increased from 1 January 2026.
• The USC 2% band changed for 2026.
• Income tax rates, bands and tax credits did not change for 2026.
• PRSI rates increase again from 1 October 2026.
• MyFutureFund auto enrolment contributions began from 1 January 2026.
• Payments made in 2026 must use 2026 Revenue Payroll Notifications, even where the work was completed in 2025.

1. Ireland’s National Minimum Wage increased in 2026

From 1 January 2026, the National Minimum Wage for employees aged 20 and over is €14.15 per hour.

This applies to most employees, including full time, part time, temporary, casual and seasonal workers. Some employees are excluded from the National Minimum Wage rules, so employers should always check the official position if they are unsure.

These rates are based on the official Workplace Relations Commission National Minimum Wage table for 2026. You can check the latest WRC guidance here.

What employers should check

• Update payroll software before processing the first 2026 pay run.
• Check hourly rates for employees aged under 20.
• Review part time, casual and seasonal staff rates.
• Check that overtime, premiums and allowances are handled correctly.
• Keep wage and working time records in case they are needed later.

2. Revenue Payroll Notifications matter in 2026

Revenue confirms that payments made on or after 1 January 2026 must use the employee’s 2026 Revenue Payroll Notification, also known as an RPN.

This applies even if the payment relates to work completed in 2025. For example, if an employee worked overtime in December 2025 but was paid in January 2026, that payment belongs in the January 2026 payroll submission.

What payroll staff should check

• Use the 2026 RPN for payments made in 2026.
• Do not mix 2025 and 2026 payment dates in the same payroll submission.
• Report pay and deductions to Revenue on or before the employee’s pay date.
• Check employee cessation dates and employment IDs carefully.
• Contact your payroll software provider if the transition process is unclear.

You can read Revenue’s guidance on income earned in 2025 but paid in 2026 here.

3. Income tax bands and tax credits did not change for 2026

There were no changes to income tax rates, income tax bands or tax credits for 2026. That means the main payroll movement for many employees is likely to come from other areas, such as USC, PRSI, minimum wage and pension auto enrolment.

For payroll teams, this still needs checking. A “no change” position does not mean no work is needed. RPNs must still be current, employee details must still be correct and payroll software must still be ready for the 2026 tax year.

4. USC rates 2026 Ireland: the 2% band changed

The Universal Social Charge, or USC, has an updated 2% band for 2026. The upper limit of the 2% band increased to €28,700.

The 3% USC band continues to apply from €28,700.01 to €70,044. Payroll teams comparing older records should remember that this band was previously 4% before it was reduced for earlier tax years.

This is one of the key updates payroll teams should check in their system settings. Even a small band change can affect deductions and employee take home pay.

5. PRSI rates 2026 Ireland: Class A rates increase from October

Class A PRSI rates apply to many employees in Ireland. For 2026, the Class A employee rate is 4.20% up to 30 September 2026, then increases to 4.35% from 1 October 2026.

Employer PRSI rates also increase from 1 October 2026. For Class A, the employer rate remains lower where weekly earnings are up to €552 and higher where weekly earnings are over €552.

These rates refer to Class A PRSI, which applies to many employees. Other PRSI classes and subclasses can apply depending on the person’s employment type, age and weekly earnings, so employers should check the official PRSI tables where needed.

This is especially important because the PRSI change happens during the year, not at the start of the tax year. Payroll staff should set a reminder before October and check that payroll software updates are ready.

You can check the Department of Social Protection’s Class A PRSI rates here.

6. MyFutureFund auto enrolment is now part of payroll

MyFutureFund is Ireland’s auto enrolment retirement savings system. Contributions started from 1 January 2026.

Employees are generally automatically enrolled if they are aged between 23 and 60, earn over €20,000 across their employments, and are not already contributing to a qualifying pension arrangement through payroll.

What this means for payroll

• Employers need to register on the MyFutureFund employer portal.
• Contributions are calculated on gross pay as reported to Revenue.
• Contributions are taken from net pay after deductions.
• MyFutureFund does not give income tax relief at source in the same way as many traditional pension arrangements. Instead, the State adds a top-up contribution.
• Employers must pay employee and employer contributions to NAERSA, the National Automatic Enrolment Retirement Savings Authority.
• Payroll staff should be ready for employee questions about deductions.

You can read the MyFutureFund employer handbook here.

7. Other payroll areas worth checking in 2026

Alongside minimum wage, USC, PRSI, RPNs and MyFutureFund, employers should also review other payroll areas that can affect employee pay and reporting.

• Small Benefit Exemption rules, where up to five non-cash benefits can be provided tax free up to a combined annual value of €1,500.
• Benefit in Kind rules, especially for employer-provided vehicles and electric vehicles.
• Payroll software settings in systems such as Xero, Sage, BrightPay, Thesaurus or other payroll platforms used by the business.
• PRSI subclasses where employees do not fall under standard Class A treatment.
• Employee details, employment IDs, pay dates and Revenue reporting settings.

Payroll software can help apply updates, but employers and payroll administrators still need to verify that settings, employee records and pay dates are correct.

You can check Revenue’s Small Benefit Exemption guidance here, and Revenue’s electric vehicle Benefit in Kind guidance here.

8. A simple payroll checklist for 2026

Here is a practical checklist for employers, payroll staff and small business owners.

• Check all hourly rates against the 2026 National Minimum Wage.
• Confirm the correct 2026 RPN is being used for each employee.
• Make sure pay and deductions are reported to Revenue on or before pay date.
• Check USC bands are updated for 2026.
• Set a reminder for the PRSI rate change from 1 October 2026.
• Register for MyFutureFund if you have eligible employees.
• Prepare simple staff communication about pension auto enrolment.
• Check Small Benefit Exemption and Benefit in Kind treatment where relevant.
• Keep payroll records clear and organised.
• Review payroll software settings after any update.
• Build practical payroll knowledge if you manage wages, timesheets or employee deductions.

For learners building practical skills, our online payroll courses can help you understand the core tasks behind payroll, reporting and employee deductions.

Payroll skills are becoming more important

Payroll can be a small part of someone’s role, or it can be a full payroll position. Either way, the same thing matters: accuracy.

When payroll rules change, it is not enough to guess. Payroll staff need to understand pay dates, deductions, tax year rules, employer costs, pension deductions and employee records.

This is where practical online training can help. The Career Academy Ireland offers online courses across payroll, Xero, accounting and administration, designed to help learners build useful workplace skills at their own pace.

Official sources used

This article has been prepared using official and trusted guidance available at the time of writing.

• Workplace Relations Commission: National Minimum Wage
• Revenue: Income earned in 2025 but paid in 2026
• Revenue: Requesting a Revenue Payroll Notification for 2026
• Department of Social Protection: PRSI Class A Rates
• MyFutureFund: Employer Handbook
• Revenue: Small Benefit Exemption
• Revenue: Electric vehicle Benefit in Kind treatment