Members’ Newsletter January 2026
Dear member, As we welcome the New Year, we in the ISME team recognise that this will be the most challenging year for many member companies for a long time.
Message from the CEO
Ireland’s macro-environment has never been as fragile. The United States produced a National Security Strategy that sounded like it was written in Moscow, and a 28-point Ukraine Peace Plan that allegedly was written in Moscow. The apparent closeness between Washington and Moscow is causing real concern among our EU neighbours, especially in the Nordic and Baltic states and in Poland. A point that both I and our former Chair Ross McCarthy have noted in dealing with our SMEUnited colleagues in Europe have noted is how the Brussels mood-music has changed. Businesses are having to get used to staff being called up for reserve service, and France, Germany, Romania and Croatia are planning the reintroduction of military conscription. The views of our EU colleagues to Ireland’s position on defence is shifting, and as I pointed out in a LinkedIn post on the recent Zelenskyy Visit, our security architecture is unable to provide basic security for the EU presidency, let alone defend against a threat to the state.
In this environment, patience may wear very thin if Ireland continues to hold out against the Mercosur deal, and we have yet to ratify CETA. Mercosur has been represented as killing our beef industry, but in reality it includes a quotatariff on beef which would amount to one Brazilian or Argentinian steak per EU citizen per year. Our micro-environment is also extremely challenging. While our GDP figures flatter to deceive at €563bn in 2024, our GNI* is a much more realistic €321bn, 47% lower. Our CSO unemployment figures have increased from a constant 4% at the start of the year towards a steady 4.9% in November. CSO CPI figures show inflation up to 3.2%, with energy and food being the main movers. This will create payroll pressure. However, wages continue to rise above the rate of inflation. The CSO Q3 earnings show wages up 4.9% since Q3 2024, but in small firms, wages are up 6.4% over the same period.
Message from the CEO
The National Minimum Wage has increased to €14.15 from 1st January, an increase of 4.8%. On top of this, auto-enrolment will add 1.5% to payroll cost for any employee who earns more than €5,000 per calendar quarter. This is an aggregate 6.3% additional payroll cost. Minister Dara Calleary just announced before Christmas that employers who set up a PRSA for employees must ensure it has a gross contribution of 3.5%, which is higher than the AE gross contribution of 3%. I don’t want to be a Dessie-downer in January so let’s finish on a positive. It does look like there is a thaw in UK-EU relations, and we appear to be close to an EU-UK SPS and Agri-Food Deal. Since so many ISME members are dependent on imports from the UK, this is excellent news, and will help you to control input costs in the New Year. British students will also rejoin the Erasmus programme, which is great news for all European youth. Lastly, on behalf of the ISME Board, National Council, and the ISME team in 17 Kildare Street, can I wish you all a prosperous 2026!
ISME news
Streamlined Funding Access for Irish SMEs with ISME Finance Finder The ISME Finance Finder, developed in partnership with Swoop Funding, is an online platform designed to streamline access to finance for Irish SMEs. It offers a centralized solution for businesses seeking funding options to start, expand, improve cash flow, refinance debt, acquire assets, or invest in new markets. Key features include: • Comprehensive Funding Options: Access to loans, equity, grants, and asset finance tailored to various business needs. • Expert Guidance: Support from a team of funding specialists to assist with queries and application processes. • Application Tools: Provision of templates and resources to facilitate funding applications. • Dedicated Support: Availability of a hotline and email support five days a week for funding-related inquiries. • Regular Updates: Finance updates and alerts to keep businesses informed of new opportunities
Q4 2025 Business Trends Survey How did your business find the fourth quarter of 2025? In an ever-changing business environment, we want to hear from you on how your organisation has been impacted by completing our Trends Survey for Q4 2025 here. Please share this survey with your network.
Additionally, businesses can avail of a complimentary 30-minute oneon-one consultation with Swoop's funding experts, offering confidential and obligation-free advice.
For more information or to begin your funding journey, visit the ISME Finance Finder.
ISME news
Health & Safety Authority Update ❑ Workplace Occupational Safety and Health Training (HSA Resources): Employees require Occupational Safety and Health (OSH) training at different points in time. Providing comprehensive occupational health and safety training for staff is essential to fostering a safe and healthy workplace environment. The provision of training helps reduce the risk of work-related injuries and ill health. This page provides links to information including the employee OSH learner journey, workplace OSH training requirements and approach, tips for procuring training, training providers, hsalearning.ie and more. ❑ Code of Practice: Safe Use of Industrial Trucks: This Code of Practice provides practical guidance on compliance with legislation related to the use of rider operated industrial trucks in all workplaces. ❑ Driving for Work: Risk Management Guidance for Employers: This guidance document has been jointly developed by An Garda Síochána, the Health and Safety Authority and the Road Safety Authority to help employers understand and manage the main risks that working drivers face and create when driving for work. ❑ Annual Review of Workplace Injuries, Illnesses and Fatalities 2022–2023 report presents the Annual Review of Workplace Injuries, Illnesses, and Fatalities for 2022- 2023. In preparing this report, we recognise the importance of providing reliable and up-to-date statistical information as an evidence base for decision-making. ❑ A Short Guide to Health Surveillance in the Workplace aims to assist employers and health professionals working on their behalf in understanding their legal requirements regarding health surveillance in the workplace. It also highlights the key elements to consider when implementing a health surveillance programme. ❑ Employing Apprentices: Safety On the Job information sheet is written for people who employ apprentices. It provides a summary overview of how employers should fulfil their duties as an employer and protect apprentices, who may be more at risk of injury and ill health.
❑ Safety On the Job for Apprentices- This information sheet is written for Apprentices. It provides some essential tips to help Apprentices stay safe and healthy as they start their career.
ISME news
ISME HR Hub – your HR support To support Members to deal with the everchanging world of HR and employment law, we have created a portal to give you access to guides, templates, contracts, policies and more to support you in managing HR in your business. We have curated the information based on the HR Life Cycle: Attraction, Recruitment, Onboarding, Policies & Training, Performance Management and Exit.
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You can also find information from government agencies and other third parties in our General Information & Resources page, links to the top downloads and view our selection of blogs including Statutory Sick Pay FAQs and EU Directive on Transparent and Predictable Working Conditions. To find out how it works and looks, click on the video about the portal here. To use the ISME HR Hub log into the Members Area, click on the top left button.
A valuable support for your employees ISME partners with Laya healthcare and their health & wellbeing provider, SpectrumLife to provide 24/7 Mental Wellbeing Support Programme (EAP) for ISME Members. We offer unlimited access for your employees and their families to a 365 freephone EAP service, accessible via website, app, or live chat. The cost for up to 30 employees is €950 + VAT and each subsequent employee €8 per employee. Find out more here.
Events •
Showcase 2026, Sun 18th – Tue 20th January, RDS Dublin, Book here
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Pendulum Summit, Friday 23rd January, The Convention Centre Dublin, Book here
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The Holiday World Show, Fri 23rd - Sun 25th January, RDS Dublin, Book here
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Business Post National Pensions Summit, Wednesday 28th January, Croke Park Dublin, Book here
Market Updates
What’s happening in foreign exchange markets? Key events that influenced foreign exchange markets in December •
The US Federal Reserve, as expected, cut interest rates by 0.25%. There were 3 dissenters, with two members voting for no cut and one for a 0.5% cut.
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The Bank of England cut interest rates by 0.25%, as expected
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The European Central Bank kept interest rates unchanged noting “underlying inflation remains consistent with 2% medium-term target”
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The key monthly US data release, Nonfarm Payrolls (NFP) rose by 64,000 in November. This reading came in better than the market expectation for an increase of 50,000. The report also showed that Nonfarm Payrolls declined by 105,000 in October and that the US Unemployment Rate climbed to 4.6% in November, compared to the market expectation of 4.4%.
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Euro zone inflation increased to 2.2% from 2.1% a month earlier
What data and factors could impact the major currencies in January? • • • • •
Thursday January 8th – Euro zone Unemployment rate and Consumer confidence Friday January 9th - US Nonfarm Payrolls employment data Monday January 19th – Euro zone core inflation year on year Friday January 23rd – UK retail sales year on year Wednesday January 28th – US Federal Reserve interest rate decision
As an ISME member, you have exclusive access to Fexco’s dedicated account manager John Barry, who will help you with all your foreign exchange requirements. • •
Reduce your cross-border payments costs Protect your business from currency volatility
Discover the benefits to your business without an obligation to trade!
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HR Updates
Winter Absences, Caring Responsibilities and Leave Entitlements
Winter inevitably brings coughs, colds and family emergencies that can lead to employee absences, and this can be a challenge for employers. There can be confusion about what leave is relevant for what situations, as there’s a range of different types of leave available to employees relating to requests related to illness, caring responsibilities and emergencies, particularly during periods of increased sickness in the winter months. Between force majeure leave, medical care leave, compassionate leave and flexible working arrangements, it can be difficult for both employers to determine what entitlement is appropriate. With some types of leave paid and others unpaid, it’s important for employers to understand their obligations and to communicate them clearly. Below is a brief outline of some of the options that may be available but if you need any further details, you can contact Sinead or Anna Marie at ISME on PH: 01 6622755 or HR@ISME.ie. Working from Home V’s Leave Where an employee has a dependent who is mildly unwell and the employee can continue to perform their duties, managers may consider temporary remote working. However, if significant care is required, employees should not be expected to work while caring. In these cases, the appropriate leave should be used. If an employee themselves has received a medical cert confirming they are unfit to work, they should not be encouraged to work remotely during this period of sick leave.
HR Updates
Leave for Medical Care (unpaid) Entitlement: Up to 5 days unpaid in any 12-month period. Purpose: To provide personal care or support to a child, parent, spouse/partner, cohabitant, grandparent, sibling or any person the employee lives with. Criteria: • The person cared for must require “significant care or support for a serious medical reason.” • Can be used for scenarios such as high-fever medical visits, post-surgery support, or short-term care for serious or chronic illness. • Cannot be taken as a half-day — any portion taken counts as a full day. Employee notice: • Must notify the employer as soon as reasonably practicable. • HR may request information on: • Relationship to the person receiving care • Relevant medical evidence/detail (e.g., certificate) Force Majeure Leave (paid) • Up to 3 days paid in 12 months, or • 5 days paid in 36 months Purpose: For urgent, unforeseeable events where the employee’s immediate presence is indispensable. Examples include: • Accident requiring emergency hospital attendance • Sudden injury to a close family member requiring urgent intervention Compassionate Leave Not a statutory entitlement; may be granted at the organisation’s discretion (e.g., bereavement or serious family circumstances). Managers should follow internal policy and HR’s direction. Flexible or Remote Working requests Employees with caring responsibilities or parenting duties have a statutory right to request—but not automatically receive—flexible or remote working. Employer obligations: • Respond within four weeks • Assess based on business needs • Maintain documentation in line with legislative requirements A public consultation on further developments has just closed, and results of this will likely be revealed in the new year.
HR Updates
Sick Leave Employees who are unwell should take sick leave and not be encouraged to work remotely while ill.
Statutory entitlement: • 5 days paid sick leave per year • Paid at 70% of normal pay, capped at €110/day • Employee must have 13 weeks’ service and provide a medical certificate Employers may offer enhanced provisions through internal policy. If absence exceeds 5 days: Employees should apply for State Illness Benefit, regardless of whether the employer provides additional sick pay. Summary for Managers • Use remote working only when duties can still be performed. • Medical care leave - unpaid / non-urgent but necessary care. • Force majeure - paid / urgent and unforeseeable situations. • Compassionate leave - discretionary. • Flexible working - employees may request; employers may decline for business reasons. • Sick leave - statutory minimum applies; remote working is not allowable during this period.
Learning & Development
The ISME Skillnet service is here to help both the business owner and their employees.
ISME Members can receive up to 40% discount on ISME Skillnet training, view courses below. As 2026 gets underway, we are reviewing our training priorities and would value your input on the business challenges and skills gaps you are facing. Please take 1 minute to complete this short survey so we can deliver more relevant and practical ISME Skillnet courses in 2026 and beyond. Access the survey here.
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