Do the numbers add up for cost of new minimum wage?

A hike in the minimum wage is planned in next month’s budget, but who will bear the costs?Ronan Smith reports

The Government looks set to confirm a significant increase in the minimum wage given soaring inflation but is still not enough to get to the goal of benchmarking it to 60% of the country’s median wage.

The budget which ministers Michael McGrath and Paschal Donohoe are set to present next month to the Oireachtas is going to be consequential for a lot of people and businesses still struggling with rising inflation, high-interest rates, and the increasing pressure brought on by the cost-of-living crisis.

The inflation environment is not as volatile as it was during the budget last year but remains embedded, running at 5.8% in the year to July with no signs of it dropping dramatically any time soon.