The Minister for Finance has revealed that starting from 1 January 2026, the national minimum wage will rise by €0.65 per hour, bringing it to €14.15 per hour, reports RTE.
In connection with this, the threshold for the 2% USC rate band will go up by €1,318, reaching €28,700.
“This increase will ensure that full-time workers on the minimum wage will remain outside the top rates of USC, while also giving a modest benefit to all workers whose income is above that amount,” Paschal Donohoe stated during the Budget 2026 announcement, reports RTE.
“I am also extending the USC concession that applies to those who have a full medical card and earn less than €60,000 per year so that the reduced rate of USC continues to apply for a further two years until the end of 2027,” he continued, reports RTE.
Addressing the Dáil, the Minister said that there is limited room for major changes to personal taxation.
“However, over the lifetime of this Government, I will stand by our commitment to make progressive changes to income tax, if the economy remains strong,” Mr Donohoe said, reports RTE.
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