The Irish Congress of Trade Unions has recommended unions organising workers in the private sector seek pay increases of between 4.7% and 6%, where sustainable, for 2026
The guidance was issued with the unanimous agreement of the Congress Private Sector Committee.
The recommendation comes as Irish workers face continued pressure from inflation. Over the past four years, the Consumer Price Index has climbed 18.9%, significantly eroding household purchasing power.
General Secretary of the Irish Congress of Trade Unions, Owen Reidy, said:
At a time of full employment and a strong economy, it is essential that workers seek to maintain and improve their living standards through collective bargaining.
The pay guidance published today reflects this position, taking into account the current rate of inflation, gains in productivity, and the Government’s decision to drop tax indexation for workers”
Despite the strong headline economic performance, families across the country continue to feel the stress of the high cost of living. With CEO pay in a range of major Irish companies reported to have increased by 30% last year, we believe workers are entitled to seek pay increases that will allow them to keep pace with basic expenses.
In Budget 2026, the Government abandoned tax indexation for workers, choosing instead to give a no strings attached €700m handout to the hospitality industry. This left hundreds of thousands of workers worse off. Unions have no choice but to factor this into pay negotiations for next year.
In addition to pay guidance, and having regard to the level of profitability and the competitive position of the enterprise concerned, the Committee recommended that unions should also seek to:
- Improve the position of lower paid workers, including by improving new entrant rates of pay;
- Secure and protect weekly working hours;
- Utilise where appropriate measures such as the Small Benefits Exemption Scheme;
- Introduce and enhance service pay awards;
- Secure additional non-pay benefits, for example shorter working time, additional annual leave, increased sick pay benefits and improved pension benefits.
The full guidance is available here: https://www.ictu.ie/publications/ictu-private-sector-pay-guidance-2026.
