08/04/2025
What are the challenges and opportunities we are facing in 2025 in employment law?
There have been several changes and updates in employment law in recent months as well as others expected later in the year.
The Workplace Relations Commission have some excellent free resources on their website www.workplacerelations.ie if readers are interested in finding out more about employment law or recent decisions.
1. National Minimum Wage Increase and New Living Wage in 2026
Effective from January 1, 2025, the national minimum wage in Ireland has risen by €0.80 to €13.50 per hour.
The living wage is set to be introduced in Ireland in 2026, replacing the national minimum wage. The living wage will be set at 60% of the median wage in any given year.
2. Statutory Sick Leave
Statutory sick leave was introduced in Ireland in 2023, providing employees with 5 days of paid sick leave at 70% of their normal salary (capped at €110 per day). The current proposal to increase paid sick leave to 7 days in 2025 has been postponed at present.
3. Maternity Protection and Employment Equality Act Amendments
The Maternity Protection, Employment Equality and Preservation of Certain Records Act 2024, effective from November 2024, introduced significant changes:
Maternity Leave Postponement: Employees who become seriously ill during maternity leave and require treatment can now postpone all or part of their maternity leave for 5 to 52 weeks. A medical certificate and at least two weeks' notice are required.
Non-Disclosure Agreements (NDAs): The Act restricts the use of Non Disclosure Agreements in settlement agreements related to discrimination, harassment, sexual harassment, or victimization claims. They can be used under specific conditions such as the employee's request and provision of independent legal advice.
4. Sectoral Employment Order (SEO) for Construction Workers
A new SEO, effective from August 1, 2025, will amend statutory minimum pay and conditions for construction industry workers.
Further information is available here https://www.workplacerelations.ie/en/what_you_should_know/hours-and-wages/sectoral%20employment%20orders/construction-sector/
5. Auto-Enrolment Pension Scheme
Beginning September 30, 2025, Ireland will implement an auto-enrolment pension scheme named 'My Future Fund.'
Employees aged between 23 and 60, earning over €20,000 annually and not already in an occupational pension scheme, will be automatically enrolled.
Employer contributions will start at 1.5% of salary, increasing to 6% by Year 10, with employees making equivalent contributions. The government will also contribute, starting at 0.5% and increasing to 2% by Year 10.
Employees can opt out after six months.
Further information is available here https://www.gov.ie/en/campaigns/0ab04-automatic-enrolment-for-pensions-hub/
6. Expansion of Gender Pay Gap Reporting
Effective from 2025, the threshold for mandatory gender pay gap reporting decreases from 150 to 50 employees. Employers with 50 or more employees must publish a report detailing their hourly gender pay gap across various metrics. This measure aims to promote pay equity and transparency.
7. EU Pay Transparency Directive Compliance
Ireland is working towards implementing the EU Pay Transparency Directive, with full compliance required by June 7, 2026. The Directive will introduce stricter pay transparency measures.
8. Employment Permits Act 2024
The Employment Permits Act 2025 introduces a new Seasonal Employment Permit, effective in 2025. This short-term permit allows non-EEA nationals to work in seasonal employment for up to seven months per year, providing greater flexibility in hiring short-term workers.
We will publish further updates as they arise throughout the course of the year.
Auto-enrolment is a retirement savings system for employees. Every €3 an employee contributes is matched by the employer, and the state will add a further €1.
