Updated / 30th September 2026

Recruitment body calls for delay in PRSI increases as permanent hiring continues to fall

The Government is being urged to delay an increase in PRSI as recruiters warn the cost of employing permanent staff is already causing businesses to hold off on hiring.

The Employment and Recruitment Federation (ERF) said permanent hiring has slowed throughout the year as employers become more cautious about the cost of taking on staff, with PRSI contribution rates set to rise again from this Thursday.

“Employers will hire when hiring makes sense. Right now, too many of them are looking at the cost of a permanent role and deciding to wait,” said Siobhan Kinsella, president of the ERF.

PRSI contribution rates will rise by 0.15pc for both employers and employees from October 1. The ERF has called on the Government to defer scheduled increases until inflation returns to 2pc – it is currently at 3.7pc.

“That caution is a rational response to what it now costs to employ someone in Ireland, and that cost goes up again this week when PRSI rises for every employer and every worker,” Ms Kinsella said.

“Budget 2027 is the moment to change that. We have asked Government to defer the scheduled PRSI increases until inflation is back at 2pc and to raise the standard rate cut-off to at least €50,000 over the next three years.”

Ms Kinsella said the pressure on permanent hiring has been building since the beginning of the year.

“Since January, recruiters have watched permanent hiring slow month after month. Employers clearly expect to need people this autumn, but they are not committing to permanent roles and they are not raising pay to fill them,” she said.

The share of recruiters reporting an increase in permanent job vacancies has halved since the start of the year, the latest ERF Irish Labour Market Monthly Monitor found.

Pay rises have also almost ground to a halt, with just 10pc of recruiters reporting an increase in permanent salaries in August, down from 27pc in May.

Just 26pc of recruiters reported an increase in permanent vacancies in August, down from 52pc in January.

Permanent job placements have also slowed during the year, with 29pc of recruiters reporting an increase in August compared with 44pc at the beginning of the year.

The latest ERF monitor, which covers recruitment activity during August, received responses from 72 recruitment businesses across Ireland.

In August, for the second month in a row more recruiters reported a fall in permanent vacancies than an increase. Around 31pc said vacancies had fallen, compared with 26pc which reported an increase.

The contractor sector is looking more positive as contractor pay rates were largely unchanged in August, with 86pc of recruiters reporting no movement.

Almost a third (32pc) of recruiters reported an increase in contract placements during August, while only 14pc reported a fall.

Temporary recruitment was more evenly split, with 29pc reporting an increase in temporary vacancies and 26pc reporting a decline.

The ERF says it represents more than 200 recruitment companies across Ireland.

About the Employment & Recruitment Federation (ERF)

The Employment and Recruitment Federation is a voluntary organisation set up to establish and maintain standards and codes of practice for the recruitment industry. Representing over 200 member companies throughout Ireland, the ERF develops and promotes education and training and provides information and advice on the sector, as well as member services such as vetting and lobbying on policy and industry issues affecting the labour market.

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