2016 minimum wage hike did not lead to higher labour costs

Study finds no evidence that firms reduced employees numbers

For around 90 per cent of firms with minimum wage employees, average labour costs increased by approximately the same amount as firms with no minimum wage workers. Picture: iStock

Raising the minimum wage in 2016 did not lead to higher labour costs for the vast majority of Irish companies a new study has found.

The ESRI was commissioned by the Low Pay Commission to assess the impact of the minimum wage rise from €8.65 to €9.15. The increase was the first rise in the minimum wage since 2007.