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Mary McDonagh, Head of HR & Payroll Services
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Recruitment plans
Nine in ten are maintaining or growing their workforce with 38% of agrifood businesses planning to employ more people over the next 12 months.
At the same time, 62% do not expect to increase headcount. For those businesses, growth will depend more heavily on getting greater capacity from the existing workforce, alongside technology and other productivity improvements. That puts greater emphasis on retention, training and how work is organised.
The story first appeared in our 2026 Food & Agribusiness Report
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The cost of employment
Rising employment costs are the most cited challenge at 58%, followed by salary expectations at 54%.
Salary expectations remain a significant challenge, although fewer businesses cite them this year than in 2025. Skills shortages have not eased in the same way, cited by 45% as a real challenge. Only 13% identify limited remote or hybrid working as a recruitment and retention challenge, reflecting the predominantly on-site nature of food and agribusiness operations.
For certain roles much of this increase in costs is set by legislation rather than negotiated with employees.
• The national minimum wage rose 4.8% to €14.15 per hour from 1 January 2026, with the Government committed to a national living wage set at 60% of median earnings, targeted for 2029.
• Auto-enrolment (My Future Fund) commenced on 1 January 2026, with an employer contribution starting at 1.5% of gross pay and rising in stages to 6% over the following decade.
• Employer Pay Related Social Insurance (PRSI) increases by a further 0.15 percentage points from 1 October 2026, following the 0.1 point increase in October 2025.
"60 in 10 businesses are not adding people, productivity will matter more."
Managing employment costs
For a business with 25 employees on an average salary of €40,000, auto-enrolment and the October PRSI change together add between 1.2% and 1.7% to payroll cost, depending on how many employees are already in a qualifying pension scheme. Auto-enrolment contributions rise in stages from 1.5% to 6%, so that element alone will quadruple over the next decade on the same payroll.
Practical steps to take now:
Model 3 years, not 1
Build the scheduled minimum wage, PRSI and auto-enrolment increases into a single three-year view of payroll cost and bring that figure into customer pricing discussions rather than absorbing each increase as it arises.
Check the employer PRSI threshold
The lower rate applies only up to €552 per week. A single hour of weekly overtime can add over €640 a year in employer PRSI. Review rosters and overtime patterns against this threshold.
Decide on your pension approach
Auto-enrolment is calculated on total pay, including overtime and bonuses, and gives no tax relief on employee contributions. An occupational scheme or PRSA meeting the minimum standard (combined contributions of at least 3.5% of gross pay or €2,800 a year, whichever is lower) is usually based on basic pay only, exempts staff from auto-enrolment, and restores that tax relief. Many businesses use a mix of both.
Use cost-efficient reward
The Small Benefit Exemption allows up to €1,500 per year tax-free across up to five separate benefits until the end of 2029, though the benefits must be non-cash, such as vouchers, rather than cash payments. Employers can also offer non-pay benefits such as extra annual leave, early Friday finishes during quieter months, or flexible start times where possible.
Employment permits
From 1 March 2026, the minimum salary threshold for a General Employment Permit increased from €34,000 to €36,605. Under the Government’s Employment Permits Remuneration Roadmap, salary thresholds will continue to be reviewed annually.
Half of businesses surveyed (49%) agree or strongly agree that annual threshold increases will make recruitment and retention more difficult. Excluding the 19% for whom permits are not relevant, agreement rises to 60%. Only 6% disagree.
Concern about future threshold increases is considerably higher than the proportion currently identifying permit requirements as a recruitment challenge, at 18%. One possible concern is that higher permit thresholds may also influence wider salary expectations, not only the pay of permit holders.
Key points for employers:
Renewals carry the cost
An existing permit holder on €34,000 must be brought to €36,605 in order to renew. Budget for renewals at current thresholds, not at the salary originally agreed.
Sector thresholds are closing
For meat processors and horticultural workers, the minimum rose from €30,000 to €32,691 and these lower thresholds will be phased out entirely by 2030.
Check working hours
Thresholds are based on a 39-hour week. Where employees work more than 39 hours, each additional hour must be paid at a minimum of €18.05.
Graduate thresholds have returned
Lower thresholds now apply to recent graduates, offering a more accessible entry route for early career hires.
Plan the full timeline
The role must first be advertised for 28 days under the Labour Market Needs Test and the application must then reach the Department of Enterprise, Tourism and Employment (DETE) at least 12 weeks before the intended start date. Visa-required nationals then need a visa application and, on arrival, an Irish Residence Permit. From decision to first day is commonly four to six months, so check DETE’s current processing dates before committing to a start date.
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Retirement ages
The Employment (Contractual Retirement Ages) Act 2025 commenced on 29 June 2026, together with an updated Workplace Relations Commission (WRC) Code of Practice on Longer Working. Over half of businesses surveyed (57%) have completed or are undertaking a review, while 35% have not yet reviewed their policies.
Key features of the Act:
• Where a contractual retirement age is below the State pension age of 66, an employee may notify the employer in writing that they do not consent to retire.
• The employer must issue a reasoned written reply within one month, either objectively justifying the retirement age or allowing the employee to continue.
• Employees aged 66 and over are covered by a separate request procedure under the Code of Practice.
• Employees may bring a claim to the WRC and the Act creates an offence for which both companies and individuals can be prosecuted.
The 35% who have not reviewed their policies should prioritise this. Those that have should note that a review completed before June 2026 predates the final Code of Practice and its two-track approach and is worth revisiting.
There is an opportunity here as well as an obligation. With 45% of businesses reporting skills shortages or difficulty finding qualified candidates and 28% struggling to retain experienced employees, an employee who wishes to continue working past their contractual retirement age represents valuable retained knowledge. Phased hours and a structured handover can also support succession planning and knowledge transfer.
Building skills from within
While 45% of businesses report skills shortages or difficulty finding qualified candidates and 54% cannot meet salary expectations, only 13% identify limited internal training and career progression as a challenge. For businesses struggling to recruit particular skills at an affordable cost, developing existing employees deserves more attention.
Businesses often focus on the cost of recruiting externally, but the economics of developing an existing employee are worth considering too. Identify the three roles that are hardest to fill, map which employees are 12 to 18 months away from each and fund a structured development plan. For example, developing a general operative into a shift supervisor may be more cost-effective than competing for an experienced supervisor externally, while also creating a visible progression route for other employees.
Model your employment costs three years ahead
Build the scheduled minimum wage, PRSI and auto-enrolment increases into a single view, and use it in your pricing decisions.
Review your pension approach
A qualifying occupational scheme or PRSA can exempt staff from auto-enrolment and restore tax relief on their contributions.
Plan employment permit renewals early
Existing permit holders must be paid the current salary threshold to renew, and new hires can take four to six months to arrive.
Update your retirement policies
The Retirement Ages Act now gives employees the right to challenge a contractual retirement age, so policies reviewed before June 2026 need revisiting.
Build a pipeline for hard-to-fill roles
Identify the employees who are 12 to 18 months away from your hardest-to-fill roles and fund their development, which is often cheaper than recruiting externally.