Quarter of small firms to cut pay

EMPLOYEES at small firms earn an average of just under €35,000 per year, with one-in-four companies saying they plan to cut pay this year.

Almost half of small firms – companies with less than 50 employees – said they cut pay last year by an average of 20%. Just over two-in-five firms cut staff numbers last year.

This year the one-in-four firms that are planning pay-cuts are expecting wage levels to be cut by close to 14%. Almost one in five anticipate reducing staff numbers in the year.