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March 2026 - New Expenses Reimbursements Office (ERO)

Over the past several months, Financial Accounts have been setting up the new Expenses Reimbursement Office (ERO), and the ERO has now assumed responsibility for processing and reimbursing all staff and non‑staff expense claims. Therefore, the handling of expenses no longer falls within the remit of the Payroll Office.

Feb 2026 - Public Service Agreement

In February 2026 a general round increase applies:

  • 1% increase to annualised basic salaryOR
  • €500, whichever is greater

This increase applies to all public servants under the agreement.

January 2026 - My Future Fund

My Future Fund officially went live on 1 January 2026. NAERSA began collecting contributions from employers and employees.

Please review My Future Fund - Auto Enrolment for details.

Budget 2026 – Key Updates

Universal Social Charge (USC) Changes

From 1 January 2026, the following USC updates apply:

  • 2% USC band increased by €1,318, raising the threshold from €27,382 → €28,700.
  • Reduced USC rate for full medical card holders (income ≤ €60,000) extended to end of 2027.

National Minimum Wage Increase (Impacts PAYE Calculations)

The minimum wage rises by €0.65 to €14.15 per hour from 1 January 2026


PAYE Tax Bands & Personal Credits

  • No changes to income tax bands or personal tax credits for 2026.
  • PAYE remains at 20% / 40%, with unchanged thresholds.

PRSI Changes

  • October 2025 - PRSI increase for Employee to 4.20% and Employer to 11.25%
  • October 2026 - Increase of 0.15% to 4.35% for Employee and 11.40% for Employer