Ireland: Key Updates for 2025
Employers in Ireland need to stay informed about important regulatory changes that will impact their operations in 2025. From the minimum wage increase to new leave entitlements and changes in employment law, being prepared is key to ensuring compliance and smooth operations in the year ahead.
Here’s a breakdown of the key updates:
1. National Minimum Wage Increase: Effective January 2025
Ireland’s national minimum wage is set to rise on January 1, 2025. This increase impacts hourly wage rates and is part of the ongoing efforts to improve workers’ compensation across various age groups.
New Minimum Hourly Rates:
- Aged 20 and above: €13.50
- Aged 19: €12.15
- Aged 18: €10.80
- Under 18: €9.45
The minimum wage applies to all workers, except those covered by an Employment Regulation Order (ERO), which sets specific wage rates for workers in certain sectors. The gross wage, including base salary, shift premiums, bonuses, and service charges, will be factored in when calculating the minimum wage.
2. Statutory Sick Pay (SSP): An Increase in Entitlement
Starting in 2025, Statutory Sick Pay will increase from 5 days to 7 days per year. This entitlement will rise further to 10 days in 2026. Employers should prepare for this change to ensure they are compliant with the updated regulations.
3. Parent’s Leave Extension: Effective August 2024
Parent’s leave will increase from 7 weeks to 9 weeks for children born or adopted after August 1, 2024. Employees can claim the additional 2 weeks of leave if their child was under the age of 2 as of August 1, 2024 or if they adopted a child less than 2 years ago on the same date. Parent’s Benefit has also increased to 9 weeks for each parent, provided they qualify.
4. Changes to Non-Disclosure Agreements (NDAs)
The Maternity Protection, Employment Equality, and Preservation of Certain Records Act 2024 introduced important changes regarding the use of NDAs in cases involving allegations of discrimination, harassment, or sexual harassment. NDAs that prevent employees from disclosing such allegations are now void unless they meet specific criteria, including the employee requesting the NDA and receiving independent legal advice at the employer’s cost.
Key NDA Requirements:
- The NDA must be clear, understandable, and offer an unlimited duration unless the employee opts for a shorter period
- It must allow employees to withdraw from the NDA within 14 days
- The NDA must permit disclosures to law enforcement, legal professionals, and relevant authorities without penalty
5. Employment Permit Legislation Changes
The Employment Permits Act 2024 introduces significant reforms, including:
- The introduction of a seasonal employment permit for approved seasonal employers
- The revision of the ‘Labour Market Needs Test’ to focus on online advertising instead of newspaper ads
- Eased restrictions for employment permit holders to change employers
6. Right to Request Remote and Flexible Working: Since March 2024
All employees now have the legal right to request remote working from their first day on the job, provided they have 6 months of continuous service. Additionally, employees who are parents or carers can request flexible working arrangements.
Eligibility for Flexible Working:
- Parents of children under 12, or under 16 if the child has a disability or long-term illness
- Carers providing care to a specified person, including spouses, civil partners, and others in the household
7. Pension Auto-enrollment: Coming in 2025
Pension auto-enrollment is set to be introduced in Ireland in 2025, with the formal system expected to launch in September 2025. Employers should prepare for this significant change, which will affect all eligible employees. Additional information will be released closer to the rollout date.
How HSP Can Help
Navigating these changes can be complex. HSP is here to help you stay compliant and streamline your HR operations:
- Reviewing and updating employment contracts, staff handbooks, and sick pay policies
- Preparing templates and policies for auto-enrollment and flexible working arrangements
- Assisting with changes related to employment permits and leave entitlements
By partnering with HSP, you can ensure that your business remains compliant with these critical updates while minimizing disruption.
