The Irish Congress of Trade Unions (ICTU) has recommended unions in the private sector seek pay increases of between 4.7% and 6%, where sustainable, for 2026.
ICTU said the recommendation comes as workers face continued pressure from inflation.
"Over the past four years, the Consumer Price Index has climbed 18.9%, significantly eroding household purchasing power," it said.
The latest inflation figures show that prices rose by 3.2% in November, up from 2.9% in October 2025.
ICTU said that in Budget 2026, the Government chose to give "a no strings attached €700m handout" to the hospitality industry, instead of tax cuts for workers.
"This left hundreds of thousands of workers worse off. Unions have no choice but to factor this into pay negotiations for next year," according to ICTU.
In addition to pay guidance, and having regard to the level of profitability and the competitive position of the business concerned, ICTU has also recommended that unions should also seek other improvements for workers.
These include increased new entrant rates of pay; protecting weekly working hours; and securing additional non-pay benefits such as shorter working times, additional annual leave, increased sick pay benefits and improved pension benefits.
The guidance was issued with the unanimous agreement of the Irish Congress of Trade Unions Private Sector Committee.
"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," said Owen Reidy, General Secretary of ICTU.
"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," Mr Reidy said.
The Financial Services Union (FSU) said it strongly endorsed the position of ICTU.
"Workers, particularly those on lower pay, deserve a decent pay increase that is above inflation," said John O’Connell, General Secretary of the FSU.
"We constantly hear about all the support that business receive, it is now time for business to support their workers," he added.
