The Irish Congress of Trade Unions (ICTU) has recommended that unions representing private sector workers seek pay increases of up to 6% in 2026.
In their report ICTU noted that consumer prices have risen by almost 20% over the past four years, which has been a major drain on people’s purchasing power.
While wages fell during 2022 and 2023, ICTU said much of that loss was recovered in 2024 and 2025.
But it warned that further increases will be needed to prevent workers from falling behind again as inflation persists.
The union body also pointed to better economic conditions in many parts of the Irish economy.
Research from the Nevin Economic Research Institute forecasts economic growth of around 3% per year to 2028, with productivity expected to rise by 1.5% annually.
ICTU was critical of measures in Budget 2026, arguing that the decision to abandon tax indexation for workers has left many people worse off.
It also highlighted the government’s €700m support package for the hospitality sector.
“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 ICTU General Secretary Owen Reidy.
He added that the pay guidance reflects inflation trends, productivity gains and the recent budget affecting workers’ incomes.
Beyond pay, ICTU has encouraged unions to pursue improvements in other areas, particularly for lower-paid workers.
These include higher entry-level pay rates, protection of weekly working hours, additional annual leave, improved sick pay and stronger pension provision.
The guidance was unanimously agreed upon by ICTU’s Private Sector Committee and has been backed by the Financial Services Union.
Its general secretary, John O’Connell, said workers on lower incomes “deserve a decent pay increase that is above inflation”.