Group recommends another increase in living wage ahead of Budget 2026

Over the past year, the Living Wage Technical Group says minimum living costs increased by 5.8% for a working-age single adult, with rents accounting for two-thirds of the rise

A living wage is the minimum income required for a single adult working full-time to achieve a socially acceptable minimum standard of living in Ireland. File photo

The living wage in Ireland should be set at €15.40 to help combat the rising cost of living, according to the Living Wage Technical Group (LWTG).

The figure reflects a 4.4% increase from last year’s rate of €14.75 and is €1.90 above the current national minimum wage, which currently stands at €13.50 per hour.

A living wage is the minimum income required for a single adult working full-time to achieve a socially acceptable minimum standard of living in Ireland. 

It reflects the minimum hourly pay required for a full-time worker, without dependents, to afford the goods and services that people have agreed are essential for enabling a basic, yet decent, standard of living.

The LWTG was established in March 2014, making it the 11th year the Living Wage has been updated and published by the group.

It calculates the living wage using evidence building on budget standards research undertaken by the Vincentian MESL Research Centre at St Vincent de Paul, and reflects the real costs faced by employees in Ireland. 

Over the past year, the LWTG says minimum living costs increased by 5.8% for a working-age single adult. 

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Rising rents also contributed to two-thirds of the change, increasing by almost €20 per week (9.3%). Increases in food, home energy and insurance costs together account for a further fifth of the growth in the cost of living. 

UCD social policy lecturer and LWTG member, Nat O’Connor, said: “The rise in the living wage is entirely driven by the cost of living. Rents and other basic costs keep going up and the lowest paid workers risk being left behind unless their wages go up to the same extent. 

"Remember that we have had 20% or more price inflation since 2019, and that affects low paid workers more acutely than others." The change to the annual rate is determined by changes in these living costs and income taxes.

LWTG member Robert Thornton added: "The latest rate follows the continued rise in minimum living costs. Since 2020, the cost of living for a working age single adult [has] risen by over €120 per week (29%). 

"While policy measures have limited the potential growth in the wage needed to meet the rising cost of living, the gap between the real living and national minimum wage remains substantial.”

In Budget 2025, the minimum wage increased by 80c.

Ahead of Budget 2026, the latest recommendation from the Low Pay Commission — an independently chaired group with worker, employer and expert representatives — is understood to have suggested another 5% rise to bring it to €14.15. For those working full-time on the minimum wage, it would raise their salary by around €25 a week.

The Low Pay Commission makes recommendations to Government each year on a minimum wage that is supposed to be fair and sustainable.