Govt should reject proposed minimum wage increase - SFA

The Small Firms Association (SFA) has urged the Irish government to turn down the suggested rise in the national minimum wage in the upcoming budget. This move is aimed at assisting small businesses in managing the escalating expenses associated with labor. In their pre-budget submission, the SFA emphasized the urgent necessity to prevent additional wage increments proposed by the Low Pay Commission in order to safeguard the viability of small enterprises.

In July, it came to light that the Low Pay Commission had advised a 5.6% rise in the minimum wage. Should the government endorse these proposals, the wage rate would surge by 79 cents an hour, escalating from €14.15 to €14.94. According to the SFA, the minimum wage has escalated from €9.15 in 2016 to €14.15 in 2026. Over the same period, the Consumer Price Index (CPI) rose by approximately 25% cumulatively.

SFA Director David Broderick firmly stated that Budget 2027 should not incorporate another increase in the minimum wage. The minister must reject the proposed rise endorsed by the Low Pay Commission to enable small businesses to better handle the persistent increases in labor-related costs observed in recent years, Broderick added. Business group Ibec has expressed significant concern over the proposed hike, deeming it nearly double what certain companies can afford or anticipated.

The Irish Congress of Trade Unions (ICTU) suggested a €1 increase in the minimum wage in its Pre-Budget Submission. ICTU stressed that if the government genuinely cares about people's living standards, it must move beyond gimmicks and handouts, and instead invest in the workers who keep the country operational.