Irish Employers Plan Pay Rises and Benefits
Dublin: Amid global economic uncertainty, a growing share of companies in Ireland are preparing to offer higher pay and improved benefits next year, according to new research. Unlike in 2024, when salary packages saw little movement, nearly half of employers now plan to implement average pay increases of 3.5%.
Shift Toward Enhanced Benefits
The survey by global advisory firm WTW found that fewer than half of Irish companies currently provide additional benefits, though this marks a clear shift from the previous year. Researchers noted that the trend of rising salaries is expected to continue, with pay growth projected through 2026.
In 2025, 44% of employers reported no change in salary budgets compared with 2024, signalling stability in financial planning. However, 39% reported reducing their salary budgets this year, while 10% increased them.
Factors Driving Salary Budgets
Cost management pressures, rising supply chain expenses, and inflation are key influences on company decisions. According to April McDonnell, Director of Reward Data and Intelligence at WTW, 36% of employers cited cost pressures, 29% pointed to recessionary risks and weak economic conditions, and 21% flagged inflation as major considerations.
“Despite economic headwinds, employers are showing a willingness to invest in their workforce, balancing rising labour costs with evolving employee expectations,” McDonnell said.
Focus on Employee Wellbeing
Beyond pay, nearly half of companies in Ireland are planning initiatives to enhance employee wellbeing and job satisfaction. These include greater workplace flexibility, expanded health and welfare supports, strengthened diversity, equity and inclusion (DEI) programmes, and improved training opportunities.
The research also found that some major Irish employers, including leading banks, are rolling back remote working policies. At the same time, concerns have been raised about wage inequality and the concentration of investment. Trade unions continue to call for fairer wage distribution and stronger protections for workers.
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