Budget 2027 was announced on 6 October 2026 by Minister for Finance, Simon Harris, and Minister for Public Expenditure, Jack Chambers.
The €8.65 billion package sets aside €7 billion for public spending and €1.65 billion in income tax measures.
But what does Budget 2027 mean for businesses? What updates are on the horizon, and what do employers need to know?
National Minimum Wage
For Irish businesses, the biggest update from Budget 2027 is the announcement of a further increase to the National Minimum Wage.
The minimum wage will increase by 79 cent, from €14.15 per hour to €14.94 per hour, on 1 January 2027.
To prepare, employers will need to assess the impact of the new minimum wage on payroll costs and financial budgeting. In industries which typically hire younger and more temporary staff, this update may add significant financial pressure, particularly for those who are already struggling with rising costs.
As well as making updates to payroll systems, the increase may require employers to update their employment contracts and other HR documentation to reflect the new rates of pay.
Income tax
As part of the Budget, the Government also announced changes to income tax brackets. The standard rate cut-off point for income tax will move from €44,000 to €46,500, with proportionate increases for married couples and civil partners.
While personal taxation rates don't have a direct impact on business costs, they may have a knock-on effect on recruitment and retention efforts. In the midst of a cost-of-living crisis, income tax relief may provide relief for employers as well as employees.
Need Budget 2027 advice?
If you need support in preparing for National Minimum Wage increases, or if you want to know how Budget 2027 may affect your business, call us any time on your dedicated 24/7 HR advice line.
If you are not a client of Peninsula yet, call us today on 1800 719 216.
