Irish law to let workers stay on until 66 takes effect June 29

Ireland is set to implement new legislation on June 29th that will permit thousands of employees to extend their working lives until age 66, matching the State pension eligibility age. The Employment (Contractual Retirement Ages) Act 2025 allows workers whose contracts stipulate a retirement age below 66 to inform their employers of their intention to continue working.

“

strengthens workers’ right to keep their job for employees with a mandatory retirement age below 66 in their employment contract

Employers who do not provide a reasoned response to such requests face potential fines of up to €5,000. The new rules do not apply to roles with legally mandated retirement ages, such as in the Defence Forces or An Garda Síochána, nor to public sector positions where retirement is already set at 66 or above. Employees must notify their employer between three months and one year before their scheduled retirement date.

“

There is a big and growing appetite among workers to continue working beyond the traditional retirement age of 65

The Irish Congress of Trade Unions (Ictu) welcomed the confirmation of the implementation date, stating the law "strengthens workers' right to keep their job." Ictu general secretary Owen Reidy highlighted the growing desire among workers to continue employment beyond 65, emphasizing the benefits for workers, businesses, and the economy, particularly in a tight labor market and with an aging population. He argued that flexible retirement options are essential for the sustainability of public finances and recognize individual worker differences.

“

Restricting the use of mandatory retirement ages is good for workers, business and the economy. It is essential in a tight labour market, an ageing population and for the future sustainability of the public finances. It recognises differences between workers and the jobs they do, compared to the blunt instrument of pushing up the pension age for everyone.