Irish employers face a wave of new legal obligations in 2025 as the government, EU directives, and global standards reshape the employment landscape. From minimum wage increases to the long-awaited pension auto-enrolment scheme, there are a number of important changes employers need to prepare for.
These employment law changes in 2025 Ireland also include updates to maternity leave, the right to request remote working, expanded sick pay obligations, and new reporting requirements under the Corporate Sustainability Reporting Directive (CSRD). In parallel, EU-level regulations on platform work and AI in HR introduce significant oversight on how employers manage technology and employment classification.
The government’s increased focus on equality, pay transparency, and workplace rights adds further layers of complexity, particularly for medium to large-sized employers. Whether it’s adapting to new gender pay gap reporting deadlines, complying with the updated Code of Practice on Employment Status, or preparing for restrictions on non-disclosure agreements is no longer optional.
Wage and Leave Changes
Employers must adjust to several changes in wage and leave entitlements taking effect in 2025. The national minimum wage will rise, maternity leave rules will expand, and statutory sick pay will remain under review. These changes require clear policy updates, accurate payroll planning, and more substantial internal procedures to stay compliant throughout the year.
Minimum Wage and Living Wage
From 1 January 2025, the national minimum wage in Ireland increased to €13.50 per hour for adult workers aged 20 and over. This rise reflects the government’s ongoing commitment to replace the minimum wage with a living wage by 2026, which is expected to fall between €14 and €15 per hour. The living wage will be pegged at 60% of the national median wage, marking a fundamental shift in how baseline pay is calculated.
This year also marks the 25th anniversary of Ireland’s statutory minimum wage, underlining how far labour protections have evolved and how much further they’re expected to go.
For employers, these increases bring more than symbolic change. The higher wage floor means greater payroll costs, especially in sectors heavily reliant on minimum-wage roles. Businesses must now review financial forecasts, update employment contracts, and revise pay structures to remain compliant and competitive. Ignoring these updates risks underpayment claims, reputational damage, and operational disruption.
Statutory Sick Pay
As of 2025, Statutory Sick Pay (SSP) in Ireland remains at five days per year despite an expected increase to seven. The government has not yet confirmed when or if the proposed extension will be implemented. While the scheme continues to phase in gradually, the next step has been postponed, leaving employers without direction on future entitlement levels.
Employers must monitor legislative developments closely and be ready to adapt quickly. Any increase in entitlements or changes to exemption criteria will require policy updates, contract revisions, and possible changes to payroll systems. Failing to reflect current entitlements or assess internal schemes’ suitability could lead to disputes, compliance issues, and potential penalties.
Neonatal Care Leave
From 2025, employees can postpone their maternity leave for up to 52 weeks if their baby is hospitalised due to a serious medical condition. This change offers greater flexibility for parents navigating extended neonatal care and ensures their statutory entitlements are not lost during a critical time.
The new right allows the remaining portion of maternity leave to be taken once the baby is discharged from the hospital, offering families essential support during medical uncertainty. For employers, this means that maternity leave may no longer follow a predictable timeline, and extended absences could occur long after the expected return-to-work date.
Companies must update their maternity leave policies and internal procedures to reflect this legal option to remain compliant. Managers and HR teams should also incorporate this possibility into workforce and resourcing plans, particularly in sectors where staffing gaps directly impact operations. Proactive planning ensures the business can compassionately support affected employees while maintaining service delivery.
Auto-Enrolment Pension Scheme – 30 Sept 2025
From 30 September 2025, eligible employees in Ireland will be automatically enrolled into a new State-run pension scheme called My Future Fund. The scheme applies to workers aged 23 to 60 who earn €20,000 or more annually and are not enrolled in a qualifying occupational pension or PRSA.
This marks a significant step in closing the pension coverage gap and introducing a structured retirement savings model for the private sector. Contributions will start at 1.5% from both the employer and the employee, with the State adding a further 0.5% equivalent, bringing total contributions to 3.5% in the first year. Over 10 years, these contributions will scale up to 6% from both employer and employee, with the State’s contribution rising to 2%.
Employers must begin assessing which staff meet the eligibility criteria, even if a pension scheme is already in place. Not all staff may be covered. Businesses should review existing pension arrangements, identify coverage gaps, and adjust payroll and onboarding systems to ensure smooth enrollment. Failure to comply could result in administrative penalties and reputational risks, so early preparation is essential.
Retirement Age Changes
A significant shift in Irish employment law is underway. A proposal to prohibit mandatory retirement before the State Pension Age of 66 unless the employee agrees it is underway. This reform aims to give older employees more autonomy over their working lives and align workplace policy with Ireland’s official State Pension Age.
A General Scheme of the Bill was published in March 2024 and is expected to become law in 2025. Once enacted, it will prevent employers from enforcing retirement before age 66 without employee consent. The proposed change reflects the recognition of longer working lives and the need for flexible retirement planning. The government initially planned to increase the state pension age to 67 by 2021 and 68 by 2028, but this decision was later reversed.
Employers should prepare for this change as soon as possible. It is recommended that all employment contracts, handbooks, and retirement policies are reviewed and updated to reflect the upcoming change. HR teams must also prepare to manage performance and workforce planning for an ageing employee base. Forcing retirement at 65, even if historically accepted, may soon become legally risky, exposing employers to age discrimination claims and tribunal challenges.
Equality, Pay Transparency & Workplace Rights
Equality legislation in 2025 will sharpen the focus on salary transparency, discrimination prevention, and the expansion of gender pay gap reporting. Employers must reassess their recruitment practices, pay structures, and internal reporting systems to meet stricter legal obligations and prepare for upcoming EU directives taking effect over the next 12 months.
Gender Pay Gap Reporting
In 2025, more employers will be subject to Ireland’s gender pay gap reporting requirements as the threshold drops from 150 to 50 employees. Companies must select any date in June 2025 as their snapshot date and submit their reports by November 2025, reducing the reporting window to just five months.
This change reflects a broader move toward accountability and transparency in workplace equality. Employers must calculate and disclose the average hourly gender pay gap, bonus gaps, and distribution of men and women across pay bands. The data must be supported by a narrative explaining the reasons for any disparities and actions being taken to address them.
Businesses must act early, as they have less time to compile and verify pay data. HR and payroll systems should be updated to capture accurate figures for June, ensuring a smooth reporting process later in the year. Organisations that delay may face reputational risk, employee dissatisfaction, and scrutiny from regulators or the public. Proactive preparation now will reduce pressure and demonstrate a clear commitment to equality.
Pay Transparency Directive (2026 Implementation Prep)
Although the Pay Transparency Directive will not be fully implemented until 2026, Irish employers must begin preparing now. The directive introduces stricter requirements around how pay is communicated internally and externally. One of the most immediate obligations is that job advertisements include salary ranges, giving candidates greater clarity.
EU pay transparency rules apply to companies in the EU with over 150 employees.
The directive also grants employees the right to request pay comparison data with colleagues doing equal work or work of equal value. This provision aims to expose and eliminate unjustified pay gaps. Crucially, the burden of proof in any pay discrimination case will shift to the employer, meaning companies must be ready to justify pay structures with clear, consistent records.
Compliance will require a fundamental review of pay systems, job evaluation processes, and recruitment templates. Businesses that take early action by standardising salary bands and auditing internal pay equity will be far better placed to handle future obligations. The reputational risks of non-compliance, alongside legal exposure, make this a critical area for HR leaders in 2025.
Equality (Miscellaneous Provisions) Bill – Jan 2025
The Equality (Miscellaneous Provisions) Bill, published in January 2025, introduces key updates to Ireland’s equality legislation, with implications for recruitment practices and discrimination claims.
The Government’s proposed Bill is aimed at improving pay transparency throughout the job application process in Ireland and is the first step towards the implementation of the EU Pay Transparency Directive before its June 2026 deadline.
The Bill bans employers from asking job applicants about their current or past salary, a move designed to prevent historic pay gaps from following candidates into new roles.
It also requires employers to include salary ranges in job advertisements before interviews, beyond the Pay Transparency Directive’s minimum requirement of providing this information at the interview stage. When enacted, public-facing job listings must be reviewed and updated to reflect accurate and fair pay bands.
In addition, the statutory time limit for employees to file a claim under the Employment Equality Act will be extended from six months to twelve months, giving individuals more time to seek redress.
Collective Bargaining – Action Plan Due 2025
In 2025, Ireland must publish a national action plan on collective bargaining in line with the EU Adequate Minimum Wages Directive. The Directive mandates that EU member states with collective bargaining coverage below 80%, as is currently the case in Ireland, must take steps to increase it.
Despite a recent opinion from an Advocate General of the Court of Justice of the EU suggesting that the Directive may conflict with EU treaties, it remains in force. The CJEU’s final ruling is pending, but Ireland’s government has already confirmed its intention to move forward with the required action plan.
This will directly affect employers, especially in sectors where union representation is limited or informal. Businesses should begin preparing for sector-level bargaining frameworks, potential wage-setting discussions, and increased union engagement.
Updated Code of Practice on Employment Status
In 2025, a revised Code of Practice on Determining Employment Status was introduced following the Supreme Court ruling in Revenue Commissioners v Karshan (Midlands) Ltd. The new code, jointly issued by Revenue, the Workplace Relations Commission (WRC), and the Department of Social Protection, provides clearer criteria for deciding whether a worker is an employee or self-employed.
This classification affects everything from PRSI contributions and tax liabilities to access to employment rights and state benefits. The code is now a central reference point for employers, contractors, adjudicators, and regulators alike. However, it is essential to note that decisions made by Revenue, the WRC, or the Department of Social Protection are not binding on one another.
Employers must urgently review current contracts, job descriptions, and working arrangements to ensure correct classification across their workforce. Misclassification may lead to retrospective liabilities, loss of workers’ benefits, and potential legal disputes. As more cases come under scrutiny in 2025, getting this right will ensure compliance and mitigate risk.
Remote Working Requests
Since March 2024, employees in Ireland have had the legal right to request remote working, supported by a formal Code of Practice issued by the Workplace Relations Commission. However, early cases show that the WRC can only assess whether the employer followed the correct process and not whether the decision to refuse the request was reasonable.
No compensation has been awarded in any remote working dispute, mainly because the legislation focuses on procedural fairness rather than outcome. Still, employers are expected to handle requests transparently, document their decisions, and provide valid business grounds if denying flexibility.
The Irish government has openly endorsed remote working, especially as a tool for boosting rural economies and decentralising employment. As a result, expectations around flexibility are rising, even if the legal framework remains relatively narrow.
Employers should ensure a clear remote working policy, train managers on the process, and consistently document responses to employee requests. Failing to follow the proper steps could expose the business to process-based challenges and damage employee relations.
Corporate Sustainability Reporting (CSRD)
The Corporate Sustainability Reporting Directive (CSRD) is now in force across Ireland. It requires large companies to begin phased-in sustainability reporting in 2025. The directive significantly expands existing non-financial reporting obligations. It aims to standardise how organisations disclose environmental, social, and governance (ESG) data, including detailed insights into employment practices, diversity, and workplace conditions.
Businesses within scope must report by the European Sustainability Reporting Standards (ESRS), which cover workforce composition, equal opportunities, working conditions, training, and employee engagement. The directive introduces a much deeper level of scrutiny into HR and workplace matters, turning what were once voluntary disclosures into mandatory reports.
From 2025 onward, all large entities must have data systems to collect, analyse, and publish reliable information under the new standards. This includes working with HR, finance, and ESG teams to align existing policies with reporting requirements. Failure to comply can result in legal penalties, reputational damage, and investor concern.
Employers should act now to embed sustainability and transparency into their operations. This will help them meet their legal obligations and position themselves as responsible employers in a rapidly evolving regulatory environment.
EU Platform Work Directive – Dec 2024 to 2026
The EU Platform Work Directive, in force since 1 December 2024, gives member states until 2026 to implement national laws aligning with its requirements. This legislation represents a significant shift for companies operating in the gig economy, such as food delivery, ride-hailing, and other app-based labour platforms.
The Directive introduces a rebuttable presumption of employment. This means that workers engaged via digital labour platforms will be presumed employees unless the platform can prove a genuine independent contractor relationship. The legal burden of proof shifts squarely onto the company, a reversal from current norms in many jurisdictions.
It also targets algorithmic management, requiring human oversight of all automated decisions affecting workers. Transparency obligations apply to scheduling, pay, termination, and decisions, especially when AI systems are involved.
Organisations should first determine if their operations fall within the scope of the Platform Work Directive. Those that use platform work as a primary or supplementary business model should familiarise themselves with the relevant provisions, particularly those concerning employment status, data processing restrictions, and algorithmic management obligations. With the compliance deadline approaching in 2026, 2025 is the time to act.
AI in the Workplace – EU AI Act (Feb 2025)
The EU AI Act, which will take effect in February 2025, sets strict requirements for employers using artificial intelligence in hiring, performance evaluations, or other HR decision-making processes. The Act mandates a risk-based approach to AI usage, meaning employers must assess the risk posed by AI tools and ensure they comply with specific regulations accordingly.
AI recruitment and HR decision systems must incorporate human oversight and be fully transparent. Employers must ensure that AI algorithms are understandable and explainable to employees and regulators, mainly if they directly influence hiring or promotion decisions.
Failure to comply with the EU AI Act can lead to heavy penalties, including fines of up to €35 million or 7% of a company’s annual turnover, whichever is higher. Employers must begin reviewing and updating their AI tools and HR processes to ensure they align with the Act’s requirements. This includes auditing AI systems, implementing necessary safeguards, and ensuring that decision-making processes are transparent, explainable, and free from bias.
Employer Action Plan
In 2025, employers in Ireland must take decisive steps to ensure compliance with significant employment law changes. Start by reviewing minimum wage, maternity leave, sick leave, and retirement policies to align with updated entitlements and new legislation. These changes affect payroll, benefits, and employee rights, so update internal policies and employment contracts accordingly.
Next, ensure your payroll systems are ready for the auto-enrolment pension scheme launching in September 2025. Identify eligible employees, update pension plan documents, and adjust payroll for the phased contribution requirements. This proactive approach will ensure that your company stays ahead of the curve and avoids penalties for non-compliance.
Prepare to disclose salary ranges in job advertisements and ensure your organisation can report pay gap data by the 2025 deadline.
Stay informed about platform work and AI regulations in HR. These laws will profoundly impact your businesses and AI-driven HR practices, so ensure your compliance strategy is flexible and robust enough to meet these evolving requirements.
Finally, consider partnering with HR Team to navigate these changes effectively. With expert support, you can ensure a smooth transition, minimise risk, and stay compliant as new regulations come into force.
Conclusion & Action Plan
2025 marks a year of substantial employment law changes in Ireland, from wage increases and pension auto-enrolment to new regulations on equality, remote work, and AI. Employers must take immediate action to update policies and payroll systems and ensure compliance to avoid legal and financial risks. Early preparation is key to navigating these changes effectively and staying ahead of regulatory deadlines.
Contact HR Team today for tailored HR consultancy and expert guidance on implementing the 2025 employment law reforms. Stay informed and compliant by joining our webinars and accessing essential resources for a seamless transition.
Frequently Asked Questions on Employment Law Changes
What is auto-enrolment pension?
Auto-enrolment is a new pension savings scheme for certain employees who are not currently enrolled in a pension in their workplace. They will be automatically included in the scheme but can opt-out after 6 months. Under the scheme, the employee, employer, and Government all pay a certain amount into the employee’s pension fund.
When does the pension auto-enrolment start?
Ireland’s pension auto-enrolment begins on 30 September 2025. Employees who meet the eligibility criteria will be automatically enrolled in the “My Future Fund” pension scheme. Employers must update their payroll systems to comply with the new pension obligations and contribute accordingly.
What is statutory sick pay?
Statutory Sick Pay (SSP) is legally mandated pay for eligible employees who cannot work due to illness. Currently, SSP entitles employees to five paid sick days per year. Employers are legally required to provide this pay to qualifying employees.
How much is statutory sick pay?
Statutory Sick Pay in Ireland is 70% of an employee’s daily earnings, with a cap of €110. Employers must provide SSP as part of their obligations under employment law and budget accordingly to ensure compliance with the regulations.
How many days of statutory sick pay?
Statutory Sick Pay covers five days annually. The government is reviewing this and employers should stay updated on official announcements to adjust their policies and comply with any new regulations regarding sick leave.
Who pays statutory sick pay?
Employers are required to pay Statutory Sick pay (SSP) directly to eligible employees. SSP is an employer-funded benefit processed through the standard payroll system. Employers must maintain accurate records of sick leave and SSP payments for compliance and auditing purposes.
How long is maternity leave in Ireland?
Maternity leave in Ireland is 26 weeks of paid leave, with the option for an additional 16 weeks of unpaid leave. This gives employees 42 weeks of leave, providing them with job protection during this period. Employers must plan for staffing coverage during this time.
How much is maternity leave in Ireland?
Maternity Benefit in Ireland is €262 per week, paid by the Department of Social Protection. This fixed weekly amount is provided during maternity leave. Employers may choose to offer additional maternity payments, but the statutory benefit provided by the government is €262 per week for eligible employees.
Can you work while on maternity leave in Ireland?
You cannot undertake paid work during maternity leave in Ireland. Employees who work during this period forfeit their entitlement to Maternity Benefits. Employers should ensure their employees understand the rules and restrictions around maternity leave.
