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.
Stock image from Getty.
Today’s News in 90 Seconds, Friday, September 12
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.
“Whilst employment trends remain positive, employers are increasingly prioritising investment in the labour market to prepare workers with the skills needed for a rapidly evolving employment landscape,” she said.
She said the emphasis on innovation and skills will play an important role in meeting future labour market needs.
Ms McElwee said one of the major challenges for employers will be compliance with new EU pay transparency rules. These rules must be transposed into Irish law by June next year.
She said a lack of detailed guidance is a serious concern for businesses.
Ms McElwee said Ibec has been urging the Government to publish clear employer guidance well ahead of the deadline.
She said this would support preparation, ensure compliance, and avoid adding unnecessary regulatory or cost burdens beyond EU requirements.
The pay transparency rules will mean all companies must ensure there are no gender based pay differences between workers doing the same job.
Pay range information will have to be published in all job ads or shared before interviews.
Employees will be entitled to transparency about their pay and career progression and will have a right to request information.