Minimum wage rise could create economic cost, warns Isme

Plans for a 16% increase over four years could result in reduced working hours for staff, increased worker productivity, increased sales prices, or a combination of all three, business group says

Since 2008, the national minimum wage has grown 21%, while the average industrial wage has climbed 24%. Picture: Simon Dawson/Bloomberg

The planned increase to the national minimum wage could create a “serious” economic cost for Ireland, a business representative group has warned.

The Irish SME Association (Isme) said if Government plans for a 16% increase over four years goes ahead, it could result in reduced working hours for staff, increased worker productivity, increased sales prices, or a combination of all three.