Ibec's annual Pay and Resourcing Forecast shows that 83% of businesses are expected to increase pay in 2027

Wages expected to increase by 3.1% next year - Ibec

by · RTE.ie

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.

"While we are seeing a continued softening in headcount growth expectations, overall workforce resilience remains very strong," said Maeve McElwee, Ibec's Executive Director of Employer Relations.

"Even with a slight labour market cooling, employers continue to prioritise permanent recruitment and talent development to maintain competitiveness despite ongoing global volatility," Ms McElwee said.

In July, it was reported that the Low Pay Commission is to recommend to the Government that it increases the minimum wage by 5.6%.

If the proposals are accepted, it would see the rate rase by 79 cent an hour from €14.15 to €14.94.

"The Low Pay Commission's reported recommendation, a rate nearly double what some companies can afford or anticipated, is extremely concerning for businesses," Ms McElwee said.

"Ibec has raised this with the Minister following the recent reports," she added.

According to Ibec, feedback in recent months from businesses has indicated that attracting international workers into key sectors is hindered by overly burdensome visa and work permit procedures.

The research is based on a survey of over 330 senior HR professionals.