Minimum Annual Renumeration Thresholds Review

The Department of Enterprise, Tourism and Employment has published a roadmap which outlines a gradual approach to increasing minimum salary thresholds across all employment permit types. The roadmap foresees a gradual implementation through to 2030 with the first increase to take effect on 1 March 2026. Our Business Immigration team highlights the proposed changes

What you need to know

• Employment permits system: The employment permits systems is focused on recruiting highly skilled personnel from outside of the European Economic Area (EEA) where there is a skill deficit. The permits system allows a non-EEA citizen to work in Ireland where they hold the correct employment permit and meet the corresponding salary threshold.
• Minimum annual remuneration: Minimum Annual Remuneration (MAR) is the lowest salary that must be paid to a non-EEA worker for an employment permit to be issued or renewed.
• Review of the roadmap: The Department undertook a review of the MAR thresholds in an effort to keep pace with inflation and changes to the working landscape as a result of economic migration.
• Key changes: An increase in annual salary thresholds will apply to some permit types, with lower thresholds for recent graduates.
• Next steps: The increases are expected on a phased basis and will be rolled out until 2030.

The Department of Enterprise, Tourism and Employment have recently announced a roadmap to implement extensive changes to the employment permits system in Ireland. The Department began an extensive review of the MARs associated with employment permits in 2023 in an effort to keep up with:

• Rising inflation
• Increased business costs, and
• Changing economic migration patterns.

What is going to change?

The Department’s Roadmap highlights a number of key changes. Overall, it increases the MAR threshold of employment permits in Ireland. While the increases are expected to be rolled out gradually until 2030, the initial increases will be seen as soon as 1 March 2026.

The MAR thresholds applied at the point of initial and renewal applications will apply to the following permits from 1 March 2026:

• Critical Skills Employment Permit with a relevant degree will increase to €40,904, up from €38,000.
• Critical Skills Employment Permit without a relevant degree but with relevant experience will increase to €68,911, up from €64,000.
• Intra-Company Transfer Permit will increase to €49,523, up from €46,000.
• General Employment Permit will increase to €36,505, up from €34,000.
• General Employment Permit for lower-paid sectors, e.g. meat processors, horticultural workers, healthcare assistants, home carers, will increase to €32,691, up from €30,000.
• Recent Graduates who have graduated from an Irish third-level institution (level-8 or above) in the preceding 12 months, or graduates who have graduated from a recognised third-level institution (level-8 or above) within the preceding 12 months and who have applied to a relevant occupation, will be subject to lower MAR thresholds to reflect early career earning capacity.
• Public sector roles that would otherwise qualify for a Critical Skills Employment Permit with a relevant degree are exempt from the threshold increases but are instead subject to national pay agreements.

What does this mean for employers?

This development means that permit applications, both initial and renewal applications submitted after 1 March 2026, must meet revised thresholds. Employers hiring non-EEA citizens for roles must evaluate whether the level of remuneration is complaint with the new minimums.

How does this impact employees?

The increase in MAR thresholds not only benefits employees by reflecting rates of pay in line with inflation but also brings workers in lower earning categories, i.e. meat processors & healthcare assistants, closer to the rate of earning necessary to qualify for family reunification.

Conclusion

The MAR threshold increases will be in effect from 1 March 2026. It will affect thousands of employment permit-holding workers in Ireland. The increase in MAR thresholds reflects the Government’s commitment to attracting talent to Ireland where there is a skills deficit, in conjunction with recognising the challenges faced by middle- and low-income workers by the ongoing cost of living crisis.

For more information and expert advice on how these changes may impact your business operations, contact a member of our Employment Law & Benefits team.

The content of this article is provided for information purposes only and does not constitute legal or other advice.