The Irish Congress of Trade Unions (ICTU) has urged the Government to focus Budget 2027 on improving living standards for workers, calling for higher wages, tax relief and greater investment in public services instead of what it described as short-term financial measures.
In its pre-budget submission, the country’s largest trade union body said the Government should introduce a package aimed at supporting employees facing ongoing cost-of-living pressures while strengthening the country’s long-term economic outlook.
Among its key proposals is the double indexation of the income tax system. ICTU said this would compensate workers for the absence of a dedicated PAYE tax package in Budget 2026 and help prevent inflation from pushing more workers into higher tax bands.
The organisation is also seeking a €1 increase in the national minimum wage, arguing that low-paid employees continue to face rising household expenses despite broader economic growth.
ICTU wants ministers to reduce the cost of essential public services, saying lower charges for everyday services would provide direct financial relief for households. It also called for the removal of the payment cap freeze on pay-related jobseeker’s benefit, saying unemployed workers should receive support that better reflects their previous earnings.
Another proposal includes setting a clear timetable for introducing the long-promised pay-related parent’s benefit, which the union believes would provide stronger financial protection for families during periods of parental leave.
The submission also places significant emphasis on public investment. ICTU called for increased spending on public transport and green energy infrastructure, saying modern transport networks and cleaner energy systems are important for economic growth and environmental goals. It also urged the Government to provide targeted assistance during the winter months where higher energy costs place additional pressure on households.
ICTU General Secretary Owen Reidy criticised what he described as repeated reliance on temporary measures in previous budgets. He said billions of euro had been directed towards VAT reductions and tax breaks that, in his view, offered limited benefits for many workers while failing to strengthen the country’s long-term finances.
Reidy argued that many employees continue to see their wages stretched by rising living costs despite Ireland’s relatively strong economic performance. He said future budgets should place greater emphasis on investment in workers and essential public services rather than one-off financial measures.
The Government is expected to begin detailed preparations for Budget 2027 in the coming months, with trade unions, business groups and other stakeholders submitting recommendations ahead of the budget announcement. ICTU said its proposals are intended to improve living standards while supporting sustainable public finances and long-term economic stability.
