Budget 2027 announcements. Implementation dates vary. · By K Imports

Budget 2027: Minimum wage and PRSI

The €14.94 adult minimum wage, €600 employer PRSI threshold and October contribution change.

Sources checked 2026-10-07.

Who it affects and when

Audience: Workers paid near the minimum wage and employers preparing payroll budgets.

Timing: Minimum wage and the employer threshold: 1 January 2027. Employee rate step: 1 October 2027.

Adult minimum wage: The announced national minimum wage rises by €0.79 from €14.15 to €14.94 per hour. This is an hourly rate, not an automatic annual salary; age-related statutory rates and actual paid hours remain relevant.
Employer threshold: The weekly earnings threshold for the higher employer PRSI rate increases from €552 to €600. This is an employer-cost threshold, not an employee tax-free allowance.
Employee PRSI: The Department's examples incorporate the already scheduled employee contribution move from 4.35% to 4.5% on 1 October 2027. Exact payslip collections depend on the pay period and applicable PRSI class.

Use actual paid hours and weeks when translating hourly pay into annual gross pay.
Keep employer PRSI costs separate from an employee's take-home deductions.
Compare January–September with October–December rather than assuming one rate applies for the whole year.

Illustrative gross-pay difference: At 39 paid hours for 52 weeks, the €0.79 hourly increase adds €1,602.12 gross per year: €0.79 × 39 × 52. This is before deductions and assumes those hours are paid throughout.

Salary & PAYE models annual employee deductions; it is not an employer payroll-cost or exact payslip engine.