Ireland’s healthcare sector faces a challenging outlook in 2025 marked by soaring demand from an aging population, persistent workforce shortages, significant wage increases across the private sector, as well as increasing financial pressures on long-term care facilities.
Minimum wage increases set for January 2025 could lead to a 10pc increase in wages across the board, while minimum salary thresholds for non-EU nurses who require a critical skills Visa will raise to €44,000 and Healthcare Assistants to €34,000[1].Both public and private healthcare providers are under mounting pressure to remain competitive while addressing critical staffing and care demands.
Excel Recruitment, a leading recruitment specialist, today released its 2025 Healthcare Sector Salary Guide, detailing these and other critical pressures shaping Ireland’s healthcare landscape. The report outlines significant challenges, from regulatory barriers to housing shortages, that are intensifying staff attrition, with international recruitment becoming increasingly necessary but constrained. The Guide also offers invaluable insights to those in the sector not only around key pressure and trends but on salary movements within the sector.
Key Trends and Outlook for 2025
The 2025 Healthcare Sector Guide identifies several key trends shaping the future of healthcare in Ireland:
- Public vs. Private Pay Disparity: Rising operational costs and recent salary hikes in the HSE have widened the pay gap, with private sector pay trailing nearly 20pc behind. To retain staff, some private employers are now offering HSE-matched pay, increased leave, and enhanced benefits, including statutory sick pay and pension options.
- Shift Toward Work-Life Balance: Many healthcare professionals are prioritising work-life balance, choosing lower-stress roles in nursing homes and step-down facilities over traditional hospital settings.
- Expansion of Virtual Care: Technological advancements continue to transform the healthcare sector. In 2024, Ireland introduced virtual wards at University Hospital Limerick and St. Vincent’s University Hospital in Dublin. This initiative, aimed at reducing hospital bed demand, is expected to expand nationwide in 2025, providing more patients with remote treatment options.
Claire Timmon Head of Healthcare at Excel Recruitment, commented on the report,
“With over 15pc of Ireland’s population projected to be aged 65 or older by 2026 and a doubling of the over-85 demographic expected within the next two decades, Ireland’s healthcare system faces unprecedented strain.
The healthcare workforce, comprising approximately 80,000 nurses and 25,000 doctors, is under pressure. Only 50-70pc of registered practitioners are actively working, and with Ireland’s population aging rapidly, demand for healthcare and long-term care services is set to rise exponentially”.
Challenges in International Recruitment
Excel Recruitment report that the sector is increasingly reliant on international recruitment to address staffing shortages, but attrition remains high among non-EU employees, with over 50pc leaving within 18 months. Key barriers include regulatory exam fees for nurses nearing €3,000, a severe shortage of affordable housing, and strict 50/50 recruitment rules[2].
The recruitment experts contend that these obstacles are major factors contributing to the high turnover among non-EU healthcare workers.
Ms. Timmon went on to say,
“With 30pc of registered healthcare professionals in Ireland not actively practicing, and an aging population that will require more long-term care, addressing workforce and structural issues has never been more critical. The recent lifting of the HSE recruitment freeze offers some hope for public sector staffing, but the entire sector will need comprehensive strategies to manage these pressures effectively.”
Nursing Home Sector Struggles
Excel Recruitment point to the wave of nursing home closures over the last few years which they say presents another urgent challenge.
Since 2018, 77 nursing homes have shut down, removing 2,600 beds from the system.
Ms. Timmon explained,
“In 2024 alone, 17 nursing homes closed due to rising operational costs that are inadequately supported by Ireland’s 15-year-old Fair Deal scheme[3]. In 2024, private sector additions of 1,000 beds in healthcare and sub-acute facilities have helped offset nursing home closures[4].
In response to this we have heard calls from numerous industry leaders, like Tadhg Daly, CEO of Nursing Homes Ireland, for a 50pc increase on current funding allocation to cover the cost of care in private and voluntary nursing homes which they say will need at least €145 million is needed.
We attended the Nursing Home Ireland conference earlier this year, where calls for updated policies and increased funding were echoed by sector leaders. We also spoke with Shane Scanlon, CEO of The Alliance, a network supporting nursing homes, who highlighted the urgency for a revised cost-of-care model to replace the outdated Fair Deal scheme, calling for stronger government intervention”.
Excel Recruitment’s 2025 Healthcare Sector Guide underscores the urgent need for strategic recruitment and retention efforts, as well as updated policies and funding solutions to meet Ireland’s evolving healthcare demands.
[1] https://enterprise.gov.ie/en/news-and-events/department-news/2023/december/20122023.html
[2] An employment permit will not issue unless at the time of application at least 50% of the employees in a firm are EEA nationals (50:50 rule).General Employment Permit - DETE
[4] Excel Recruitment Client Data
