In a recent report, the Irish small and medium-sized business organisation ISME expressed concern over a possible increase in the national minimum wage. The Low Pay Commission has suggested raising the basic pay rate to at least €13.70, an 8% increase from the current €12.70, which ISME believes is unwarranted given the current inflation rate of 2.2%. ISME argues that any increase in the minimum wage should not exceed the rate of inflation to prevent adverse effects on small businesses, particularly in the services sector.
Minister for Enterprise, Trade and Employment Peter Burke has dismissed the report, stating that negotiations on the Budget have not yet been finalized. The Government aims to introduce a new living wage by 2026, equivalent to 60% of median wages in the economy. However, businesses are struggling with rising costs attributed to Government initiatives.
While the fate of the minimum wage increase remains uncertain, it is evident that businesses are seeking support to mitigate financial challenges and prevent closures and job losses.