Wages expected to increase by 3.1% next year - Ibec

The annual Pay and Resourcing Forecast from business group Ibec predicts that the average worker can anticipate a pay increase of approximately 3.1% in 2027. Of the businesses surveyed, 83% are expected to boost wages that year, while only a small fraction anticipate decreasing salaries. In 2026, 85% of businesses raised pay, with an average increase of 3.5% across all sectors.

Looking ahead, 35% of businesses plan to expand their workforce in 2027, a slight decrease from the previous years. However, 8% of businesses intend to reduce headcount in the coming year. The primary reasons for hiring more employees include increased production, demand for services, business expansion into new markets, and cultivating a pipeline of future talent.

Despite a slight cooling in headcount growth expectations, Ibec's Executive Director of Employer Relations, Maeve McElwee, emphasizes that overall workforce resilience remains strong. Ms. McElwee notes that employers continue to prioritize permanent recruitment and talent development to maintain competitiveness amidst ongoing global volatility.

She also expresses concern over the Low Pay Commission's recommendation to increase the minimum wage by 5.6%, which would see the rate rise from €14.15 to €14.94 per hour. Ibec has raised this issue with the Minister following recent reports, highlighting the challenges businesses face in attracting international workers due to burdensome visa and work permit procedures. The research is based on a survey of over 330 senior HR professionals.