Employers across Ireland and Northern Ireland face significant employment law updates in 2026. Changes to minimum wage, statutory sick pay, working time rules and pay transparency will directly affect payroll, policies and day-to-day people management.
For many organisations, especially those operating on both sides of the border, the challenge is not a lack of information but turning new rules into clear, workable processes. Early preparation reduces compliance risk, protects employee trust and avoids costly last-minute corrections.
This guide sets out the confirmed changes already passed into law, highlights the key differences between Ireland and Northern Ireland, and outlines the practical steps employers should take ahead of Q1 2026. HR Team supports organisations at every stage, from targeted policy updates to full compliance audits.
2026 Sick Pay Changes: What Employers Need to Know
Sick pay remains one of the areas with the greatest divergence between Ireland and Northern Ireland. Employers must apply the correct entitlement, payment method and payroll logic in each jurisdiction, while communicating clearly with employees to avoid confusion.
The 2026 changes strengthen employee protection, but they also increase employer responsibility for accurate record-keeping, correct payments and up-to-date policies.
Statutory Sick Pay in Ireland
In Ireland, statutory sick leave remains at five paid days per calendar year. Employers must pay 70 percent of an employee’s normal wages, capped at €110 per day, from day one of absence.
Short-term illness continues to be covered directly by the employer rather than the state. To remain compliant, organisations must maintain clear documentation, apply a fair request process and ensure that employee handbooks and contracts accurately reflect statutory entitlements.
Where enhanced sick pay schemes exist, employers should confirm that these meet or exceed the statutory minimum without creating conflict or ambiguity. Payroll systems should track days used across the year and apply payments consistently for all eligible employees.
Northern Ireland SSP: Day-One Payment from 2026
Expected from April 2026, Statutory Sick Pay in Northern Ireland will be payable from the first day of absence. The minimum earnings threshold will be removed, extending eligibility to lower-paid workers.
SSP will be paid at the lower of the standard weekly rate or 80 percent of average weekly earnings, for up to 28 weeks. Employers must update payroll systems to reflect the new calculation rules and remove reliance on unpaid waiting days.
Clear guidance for managers is essential. Consistent communication improves employee confidence in the new system and reduces the risk of incorrect advice or payroll errors.
Minimum Wage Increases in 2026
Minimum wage rates will rise again in both Ireland and Northern Ireland in 2026. These increases affect more than hourly pay. They influence payroll budgets, pay structures, recruitment decisions and internal pay progression.
Employers should also be alert to pay compression, particularly where entry-level roles move closer to supervisory or skilled positions.
Ireland Minimum Wage: €14.15 from January 2026
Ireland’s national minimum wage will increase to €14.15 per hour on 1 January 2026. This reflects the continued transition toward a living wage, set at 60 percent of median earnings.
Lower age bands will rise in line with the main rate, maintaining consistency for younger workers. Employers should assess the wider payroll impact, especially in labour-intensive sectors such as retail, hospitality and social care.
Job offers, contracts and HR systems should be updated before year-end. Transparent communication helps employees understand how the change affects their pay and reinforces trust.
Northern Ireland Minimum Wage: £12.71 for Age 21+
From April 2026, employees aged 21 and over in Northern Ireland will be entitled to a minimum hourly rate of £12.71 under the National Living Wage.
Because the increase takes effect in April rather than January, mixed-year payroll cycles increase the risk of error. Employers should update budgets early and remove outdated wage references from recruitment and onboarding materials.
For cross-border employers, tracking both the January and April changes is essential to maintain full compliance in each jurisdiction.
Working Time and Flexible Working Updates
Working time and flexibility will continue to evolve in 2026. Employers must balance operational needs with stronger employee rights around scheduling, remote work and work-life boundaries.
Working Time Rules in Ireland
Ireland remains aligned with EU working time law. The 48-hour weekly limit continues to apply, with no opt-out. Employers must accurately record hours worked, rest periods and breaks.
Under the Work Life Balance legislation, employees have a structured right to request remote and flexible working arrangements. Employers should follow a transparent process, provide clear responses and document decisions consistently.
Training managers and reviewing rotas supports compliance while reducing burnout and improving retention.
Flexible Working and the Good Jobs Bill in Northern Ireland
Northern Ireland is preparing for significant changes under the proposed Good Jobs Bill. Employees will gain a day-one right to request flexible working, shaping more inclusive hiring and onboarding practices.
Planned banded hours contracts aim to provide greater income stability for workers with variable schedules. Employers will need to assess actual labour needs and adjust contracts accordingly, supported by accurate records.
A right-to-disconnect code is also expected. Setting clear boundaries for out-of-hours contact helps reduce stress and supports productivity when led from the top.
Pay Transparency and Gender Pay Reporting
One of the most substantial changes in Ireland in 2026 relates to pay transparency. While Northern Ireland will not introduce equivalent legal requirements this year, expectations around openness continue to rise.
Pay Transparency in Ireland
By June 2026, Ireland will implement national legislation to reflect the EU Pay Transparency Directive. Employers will be required to include salary ranges in all job advertisements and remove questions about a candidate’s pay history.
Employees will gain the right to request information about their own pay and the average pay of colleagues of the opposite gender performing equal work. Confidentiality clauses cannot prevent employees from discussing pay for the purpose of identifying inequality.
Where unjustified gender pay gaps of five percent or more are identified, employers will need to prepare corrective action plans. Early internal pay audits reduce risk and strengthen employee confidence.
Northern Ireland: Best Practice for Now
Northern Ireland will not introduce mandatory pay transparency rules in 2026. However, equal pay law remains fully enforceable, and employee expectations are shifting.
Many employers are voluntarily adopting salary ranges and reviewing pay structures to remain competitive and prepare for future legislative change. Aligning with the stricter Irish standards can simplify processes for cross-border organisations.
Ireland vs Northern Ireland: Key 2026 Differences
Employers operating in both jurisdictions must manage differing obligations across sick pay, minimum wage, working time and pay transparency. Clear internal guidance helps ensure compliance while maintaining a consistent employee experience.
Employer Compliance Checklist for Q1 2026
Successful compliance depends on early, structured action.
Employers should:
- Update payroll systems for new minimum wage rates in both jurisdictions.
- Review and refresh sick pay, wage and working time policies.
- Implement pay transparency requirements in Ireland, including salary ranges and updated recruitment processes.
- Align cross-border HR guidance so managers apply the correct rules in each location.
- Train managers and HR teams on flexible working, sick leave and pay discussions.
- Communicate upcoming changes clearly and early to all employees.
Final Thoughts: Staying Compliant with Confidence
Employment law changes in 2026 will shape how organisations pay, support and manage their people. Employers who act early reduce legal risk, protect payroll accuracy and strengthen trust across their workforce.
HR Team works with employers across Ireland and Northern Ireland to review policies, configure payroll systems and train managers on every confirmed update. A tailored compliance audit provides clarity and confidence for the year ahead. Contact HR Team today to review your HR policies and book a 2026 compliance consultation.
Frequently Asked Questions (FAQ)
What is the new statutory sick pay (SSP) rule in Northern Ireland expected from 2026?
Expected from April 2026, SSP in Northern Ireland will be payable from day one of sickness absence — the previous “waiting days” rule (the first 3 unpaid days) is gone. The earnings threshold (Lower Earnings Limit) will be removed, meaning even low-paid workers qualify. Employers must update payroll systems accordingly.
Has statutory sick pay changed in the Republic of Ireland for 2026?
No. The statutory entitlement remains at 5 paid days per year, paid by the employer at 70% of normal wages (capped at €110/day). Plans to increase paid sick leave beyond 5 days have been paused. Employers need to maintain their existing sick-leave policy and track usage carefully.
What are the minimum wage rates employers must apply in 2026?
Republic of Ireland: Minimum wage increases to €14.15/hour from 1 January 2026.
Northern Ireland (UK): From April 2026, the National Living Wage (for 21+) rises to £12.71/hour.
Employers should update payroll and contract templates accordingly before these dates.
What does the upcoming pay transparency law mean for Irish employers?
Under the forthcoming national legislation (to implement the EU Pay Transparency Directive), by June 2026 employers in Ireland must:
- Include salary ranges in job advertisements and recruitment materials.
- Stop asking applicants about their past or current pay (“pay history questions”).
- Provide employees — on request — with their own pay level and average pay data for colleagues of the opposite gender doing equal work (“right to pay information”).
- Prepare for enhanced gender pay gap reporting and pay-equity assessments when unjustified gaps exceed defined thresholds.
What should employers do now to prepare for 2026 changes?
Employers in Ireland and Northern Ireland should:
- Update payroll and HR systems to reflect the new minimum wage and SSP rates.
- Revise sick pay, wage, and job-advertisement policies.
- Include salary ranges in new job ads (Ireland).
- Train HR/staff on SSP changes (NI) and pay transparency procedures (Ireland).
- Document pay structures and job-value categories in case of pay-gap reviews or complaints.
