January 2027 payroll: what changes
Quick answer
From 1 January 2027, the national minimum wage rises to €14.94 an hour, the weekly threshold for the higher employer PRSI rate rises from €552 to €600, the standard rate income tax band for a single person rises to €46,500 with higher tax credits, and the USC 2% band extends to €30,300. My Future Fund contributions stay at 1.5%.
The changes
| 2026 | From 1 January 2027 | |
|---|---|---|
| Adult minimum wage | €14.15 an hour | €14.94 an hour |
| Higher employer PRSI rate starts above | €552 a week | €600 a week |
| Standard rate band (single person) | €44,000 | €46,500 |
| USC 2% band ends at | €28,700 | €30,300 |
| My Future Fund employer and employee rate | 1.5% | 1.5% |
Budget measures still need the Finance Act. Revenue issues each employee's 2027 tax credits to their employer before the first pay run.
Your January checklist
- Raise anyone under €14.94 an hour, and check the reduced rates for workers under 20
- Check who crosses, or drops below, the new €600 employer PRSI threshold
- Make sure your first 2027 pay run uses the new Revenue Payroll Notifications
- Confirm your payroll software has the 2027 rates and bands
- Keep My Future Fund deductions running for enrolled employees
Try our 2027 payroll check to see which of your employees are affected. With us, all of this is done for you.
Last checked 13 November 2026 against CRO and Revenue guidance. This is general information, not legal advice for your company.