Ibec calls for PRSI rebate for service sector amid high cost of doing business

The ‘front of house’ aspects of the economy directly employs approximately 230,000 individuals, accounting for nearly 9% of total employment in the country, according to an assessment report published by Ibec.

Lobby group Ibec has called for a PRSI rebate for businesses in the service sector most affected by increased costs, as government is unlikely to budge on lowering Vat.

There have been several closures in the hospitality and service sector, also referred to as the experience economy, since the start of the year with many operators citing the high cost of doing business as their main challenge.

"While we welcomed the recent Government report on the impact of accumulative labour cost measures on business, the true measure of its success lies in the urgency and decisiveness of the policy response,” said Sharon Higgins, executive director of membership and sectors at Ibec.

“The report has confirmed the significant cost increases that Experience Economy businesses are expected to face over the next two years and acknowledges the serious concerns regarding job retention and business viability,” she said.

The ‘front of house’ aspects of the economy directly employs approximately 230,000 individuals, accounting for nearly 9% of total employment in the country, according to an assessment report published by Ibec.

A separate report by the Department of Enterprise, Trade and Employment showed that firms in the hospitality sector could see payroll costs rise to 37% by 2026.