Wages expected to increase by 3.1% next year - Ibec
Ibec research indicates that Irish workers can expect an average pay increase of 3.1% in 2027, with 83% of businesses planning salary hikes. However, the report notes a softening in headcount growth and expresses concern over potential government-mandated minimum wage increases.
Why it matters
It provides a forecast for labor market trends and wage inflation, which are critical indicators for economic stability and business planning in Ireland.
The average worker can expect a pay increase of about 3.1% in 2027, according to new research from business group Ibec.
Its annual Pay and Resourcing Forecast shows that 83% of businesses are expected to increase pay in 2027.
Ibec said a minimal number of respondents indicated that they expect to decrease wages.
According to the research, 85% of businesses increased pay in 2026, with respondents reporting an average increase of 3.5% across all sectors.
The survey shows that 35% of businesses plan to increase their headcount in 2027, down from 37% forecasted for 2026 and 41% for 2025.
8% of businesses said they plan to decrease headcount next year.
Respondents said that the primary drivers of additional headcount are increased production and demand for services, business expansion into new markets, and building a future pipeline of talent.
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