The Minister for Finance has announced that as of 1 January 2026, the national minimum wage will increase by €0.65 per hour to €14.15 per hour.
Linked to that, the ceiling for the USC 2% rate band will be increased by €1,318 to €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 said as he announced Budget 2026.
"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 added.
The Minister told the Dáil that the scope for significant personal tax changes is limited.
"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.
