Pay no longer ‘default lever’ as salary growth stalls
Salary growth has slowed sharply across the Irish labour market according to new analysis.
According to the 2026 Morgan McKinley Irish Salary Guide, median permanent salary movement has remained largely flat, ranging from 0% to 2%, with many roles tracking at or below inflation.
Irish employers continue to hire but are doing so with tight control over headcount and reserving salary premiums only for skills that are genuinely critical to delivery or risk management.
Unlike previous years, the slowdown in salary growth is not being driven by weak demand for talent, according to Irish-owned global talent services company Morgan McKinley. Instead, organisations are under pressure to deliver digital transformation, meet regulatory and compliance obligations, and manage leaner operating models at the same time as controlling costs. As a result, employers are making deliberate trade-offs.
Broad salary increases have largely disappeared, replaced by highly targeted investment in specialist capability and a growing reliance on contract, fixed-term, and fractional professionals.
The guide shows that meaningful salary growth is now concentrated in a narrow set of specialist disciplines, including advanced technology; cyber and data governance; environmental, social, and governance (ESG); regulatory risk and compliance; and large-scale change delivery. In these areas, uplifts of between 4% and 8% are still being recorded where skills shortages remain acute.
Trayc Keevans, Global FDI Director at Morgan McKinley, said the findings reflect a labour market that is still active but far more disciplined.
She said: “Employers are not in hiring retreat, but they are being far more intentional. Demand remains strong where skills directly enable transformation, regulatory compliance, or operational continuity, but organisations are no longer responding by expanding teams or lifting salaries across the board.
“Pay is no longer the default lever. Flexibility, clarity of role, quality of leadership and long-term development have become just as important in attracting and retaining talent, particularly in these specialist and high pressure roles,” added Ms Keevans.
In the technology and data sector, hiring is now focused on AI, machine learning, and cybersecurity. New regulatory frameworks have birthed specialised roles such as AI auditors and AI ethicists.
In the finance sector, the jobs market remains resilient but cautious. Demand is driven by revenue-generating or regulatory-critical roles.
Meanwhile, ESG has transitioned from a compliance trend to a structural necessity. Hiring has pivoted from basic reporting to strategic roles integrating sustainability into finance and data functions.
In life sciences and engineering, biopharma expertise in Ireland remains in short supply, leading to intense competition and counter offers.
Construction demand has remained strong despite pauses in certain sectors such as data centres and large scale pharma investment. Engineering consultancies continue to carry heavy design workloads, while the housing shortage and infrastructure upgrade requirements are expected to sustain pressure on talent well into the next decade.