A look back at employment law changes in 2025

2025 has almost been and gone, and it has been a busy year for employment law. From artificial intelligence to pensions, gender equality to employment status, there have been plenty of issues for SME businesses to grapple with.

Here is our summary of the main changes; a checklist to help you make sure your business is compliant with the law as the year closes.

The national minimum wage rises

Right at the start of the year, on 1st January, the national minimum wage rose to €13.50 for people aged 20 and above. For 19-year-olds it became €12.15; €10.80 for 18-year-olds; and €9.45 for under-18s.

Statutory sick pay increases paused

Following the introduction of statutory sick pay in recent years, the number of days it was to be paid for in 2025 was due to increase from five to seven; with a further increase to 10 in 2026. However, after consultation with employers, these increases were paused due to cost concerns.

The rate of statutory sick pay is 70% of normal pay capped at €110 per day.

Gender pay gap reporting extended

The Employment Equality Act 1998 (Section 20A) (Gender Pay Gap Information) (Amendment) Regulations 2025 came into effect on 31 May. These lower the headcount at which gender pay gap reporting becomes mandatory from 150 to 50, bringing many more SME employers into its scope.

If you are affected you need to conduct a June pay snapshot and publish by a deadline of the end of November each year.

Auto-enrolment pensions delayed

Auto-enrolment pensions were due to come into force on 30th September 2025. However this was deferred until 1st January 2026 to both give employers more time to prepare and align with the tax year.

With this new date just around the corner you will need to have set systems up, issued communications to staff and be ready to start minimum contributions from you and them of 1.5% of salary.

Code of Practice on Determining Employment Status came into effect

This updated code of practice was published in 2024 and put into practice in 2025. It helps you and people who work for you better understand their employment status. This affects things like PRSI contributions, tax liabilities and access to employment rights and state benefits.

The EU AI Act launched

Introduced in Ireland on 1st August, this requires you to identify AI systems in use and classify them by risk. Higher risk applications require extensive human oversight. This includes HR functions like recruitment and employee monitoring, where there is the potential for bias and other inequality to be present. It is important that you have the necessary reporting and documentation where relevant to comply.

Time to reflect

Amidst taking some time to enjoy Christmas and a well-earned break, now is a good time to reflect on the past year and ensure all your policies and procedures are aligned with the changes that happened. If you want help doing this, or making changes yourself, please reach out to us. We are here to help across the country.