Firms face €4bn rise in wage bills, says Ibec

Government urged to pause labour market measures

Ibec said double-digit increases in the minimum wage, increases to employer PRSI, modifications to statutory sick pay, the introduction of pension auto-enrolment, substantial increases in the salary thresholds for work permits, and enhanced protective leave entitlements have combined to impose an unrealistic burden on businesses.

Ibec has called for a halt to all labour market measures being introduced by the Government: The business representative group estimates these will add €4bn to the annual wage bill of Irish employers.

In a letter to Taoiseach Leo Varadkar, Ibec’s CEO Danny McCoy said that labour costs would rise by between 25% and 30% for some firms.