Wages expected to increase by over 3% in 2027, Ibec says

WAGES ARE EXPECTED to increase by an average of 3.1% next year, according to Irish business group Ibec.

In its annual pay and resourcing report, Ibec said that 83% of businesses are expected to increase wages in 2027, and a “minimal” number expect to decrease wages.

In 2026, 85% of businesses increased pay by an average of 3.5% across all sectors, according to the report.

The business group also said that over a third of companies (35%) plan to increase their headcount in 2027, down from 37% forecasted for 2026 and 41% for 2025.

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Most new hires will be for permanent roles, rising to 92% in 2026 from 89% in 2025.

The primary drivers of increasing headcount are increased production and demand for services, business expansion into new markets, and building a future pipeline of talent.

The research was carried out by surveying over 330 human resources professionals. 

Maeve McElwee, Ibec’s Executive director of employer relations, said: “Basic rates of pay continue to rise steadily across all sectors and regions. While wage growth is expected to ease slightly toward 3.1% in 2027, rates remain largely determined by competition for specialised skills, productivity and business performance.”

McElwee also said that “workforce resilience remains very strong” despite a “continued softening” in headcount growth expectations.

“Even with a slight labour market cooling, employers continue to prioritise permanent recruitment and talent development to maintain competitiveness despite ongoing global volatility,” she added.