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For businesses operating in Ireland, some 2025 employment legislation change has already come into effect, with more expected this year.
We have taken considerable effort to verify that the information provided below was correct at the time this article was published. However, it is worth noting that the government may revise timelines during 2025 as plans develop.
2025 legislative changes/updates
The following information provides details of impending changes to Irish employment legislation.
Minimum Wage
The start of 2025 saw an increase to minimum wage implemented. With the previous rate of €12.70 moving up to €13.50 per hour.
This came into effect on 1st January.
Pension Auto Enrolment
My Future Funds, the Auto-Enrolment Retirement Savings Scheme, is being introduced this year. Where employees are aged between 23 and 60, earning over €20,000 annually and are not already in an occupational pension scheme, employers will be required to automatically enrol them into the government scheme. Employer contributions are set to begin at 1.5% of the salary increasing to 6% by Year 10. Equivalent contributions will also need to be made by the employees. Government contribution will start at 0.5% increasing to 2% in Year 10. An opt out will be provided for employees after 6 months.
This is expected to come into effect on 30th September.
Gender Pay Gap Reporting
The threshold for businesses to officially report on their gender pay gap will change from 150 employees or more, to over 50. The 2024 regulations also saw updated formulas for making calculations and provided further clarification on the categorisation or benefits.
It is intended that the reporting deadline will move to November, currently December.
Statutory Sick Pay
It was widely published last year that Statutory Sick Pay would be increased from 5 to 7 days (70% of the employee’s normal pay up to a maximum of €110 a day). Due to businesses expressing concern over the cost implementations of this change, no final decision has yet been made. Before invoking any changes, the government has committed to a review by the Economic and Social Research Institute (ESRI) to understand the impact before they determine whether to continue with plans to increase SSP to 7 days.
There is no agreed implementation date confirmed yet.
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