Economic and market pressures indicate modest salary growth in Irish economy this year.
Irish employers will take a measured approach to salary increases in 2025, with pay rises expected to remain modest at 2% to 3%.
That’s according to the latest Morgan McKinley 2025 Irish Salary Guide, which analyses pay across a range of professions and sectors.
“Companies that can implement structured and transparent salary frameworks will strengthen their ability to attract and retain talent”
It appears the days of across-the-board salary increases appear to be over, as firms adopt a more calculated approach, offering raises where they are most needed to address skill shortages.
Against a backdrop of moderate inflation and planned minimum wage hikes, companies are focusing on retaining talent in strategic areas.
Firms cautious about wage inflation
Despite 44% of companies increasing salaries in the past six months, businesses remain cautious about wage inflation.
Rather than large-scale pay hikes, firms are adopting structured salary transparency and career progression plans to attract and retain skilled professionals in key sectors such as technology, life sciences, and financial services.
“Ireland’s employment market remains competitive, with organisations becoming more selective about salary increases,” explained Trayc Keevans, global FDI director at Morgan McKinley.
“While overall pay growth is modest, demand for skilled talent in technology, finance, compliance, life sciences, projects and change and construction give professionals in these fields strong negotiating power. Employers must take a strategic approach to pay and benefits to retain top talent.”
The guide reveals that only 22% of organisations disclose salary ranges, while 60% opt for confidentiality, citing concerns over employee dissatisfaction and complex pay adjustments.
“Salary transparency remains a contentious issue for many companies. Employers are wary of the impact open salary structures may have on existing teams, but there is growing pressure from employees and job seekers for greater clarity,” Keevans noted.
“Companies that can implement structured and transparent salary frameworks will strengthen their ability to attract and retain talent.”
The demand for flexible working arrangements remains high, with 67% of employees valuing remote work options and 56% prioritising flexible hours. While dissatisfaction with benefits has eased slightly, more than half (54%) of employees believe their packages need improvement, highlighting pensions, health insurance, and bonuses as critical employee offerings.
Despite 44% of companies increasing salaries in the past six months, businesses remain cautious about wage inflation. Rather than large-scale pay hikes, firms are adopting structured salary transparency and career progression plans to attract and retain skilled professionals in key sectors such as technology, life sciences, and financial services.
“We are seeing a shift from reactive salary increases towards more strategic talent retention initiatives. Employers who focus on structured career progression, meaningful benefits, and flexibility will be in the strongest position to compete for talent,” Keevans added.
While more than half (56%) of employees expect a salary increase in 2025, more than 10% remain uncertain. Economic factors, company performance, and shifting hiring trends are fueling this uncertainty, making job security a top concern. Professionals in highly competitive industries are increasingly looking beyond salary, valuing long-term career prospects and work-life balance.
“The regional recruitment market in Ireland is thriving, with growing investment in remote work and regional job hubs creating exciting new opportunities outside Dublin. While Dublin remains a major employment hub with a strong multinational presence, the regions are becoming increasingly attractive, offering growing career prospects, a more affordable cost of living, and an enhanced work-life balance. Together, these developments are strengthening Ireland’s position as a diverse and dynamic place to build a career.
“The Irish job market has settled into a measured pace after the rapid post-pandemic shifts. While economic and regulatory challenges persist, companies that invest in salary transparency, structured career progression, and flexible working policies will be best positioned to attract and retain top talent in 2025,” Keevans said.
Main image at top: Trayc Keevans, global FDI director at Morgan McKinley
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