Workers in line for 3pc pay rises on average next year

"A new Ibec HR update also shows that 85pc of businesses increased pay this year. The average pay rise was 3.6pc across all sectors of the economy. The largest pay hikes, averaging 5.2pc, were in the hotels, tourism and leisure industries. According to Ibec, this reflects changes in the minimum wage and demand for labour in these sectors. None of the HR professionals who were surveyed for Ibec's Pay and Resourcing Forecast Report 2025 expect pay cuts next year."

"The survey reveals that over a third of companies plan to increase their workforce in 2026. This is down from 45pc last year. Most new hires will get permanent roles, although the portion of these opportunities is forecast to fall from 95pc this year to 89pc next year. Increased production and demand, business expansion, and employers' desire to build a future pipeline of talent are the key factors influencing managers who plan to boost their headcounts."

"Maeve McElwee, Ibec executive director of employer relations, said wages are expected to continue rising despite easing inflation. "This will be largely driven by minimum wage increases and ongoing competition for talent in particular sectors," she said. She said there is a slight slowdown in headcount growth but the number of companies maintaining their workforce remains strong. She said the emphasis on innovation and skills will play an important role in meeting future labour market needs."

Eighty-five percent of businesses increased pay this year, with an average rise of 3.6% across the economy and the largest hikes (5.2%) in hotels, tourism and leisure driven by minimum wage changes and labour demand. No surveyed HR professionals expect pay cuts next year. Over a third of companies plan to grow headcount in 2026, down from 45% last year, with most new roles remaining permanent though permanence is forecast to fall from 95% to 89%. Employers cite production, demand, expansion and talent pipeline needs. Wages are expected to keep rising and employers are prioritising skills investment. Compliance with upcoming EU pay transparency rules and a lack of detailed guidance are major concerns.

Read at Irish Independent