Publicans say extra cost of living wage increase is 'unsustainable'

Vintners Federation of Ireland says introducing a living wage would mean 40% of a pub’s turnover would go on labour costs

'If we move to a living wage within 18 months, bank holiday pay will be almost €35 per hour for our most junior staff,' said Vintners Federation of Ireland CEO Pat Crotty. 

Publicans say they have deep concerns over the projected increases in labour costs due to the planned shift to a living wage by the start of 2026.

Ahead of the Vintners Federation of Ireland national AGM this week, the organisation said 40% of a pub’s turnover would go to labour costs alone with the introduction of a living wage, up from the current 36%.

“If we move to a living wage within 18 months, bank holiday pay will be almost €35 per hour for our most junior staff,” Vintners Federation of Ireland CEO Pat Crotty said. “Such costs are simply unsustainable for our members and could severely impact the ability of pubs across Ireland to operate viably.”

They also said a recent Vintners Federation of Ireland benchmarking shows 37% of publicans are considering retirement within the next two years with 84% reporting that no family member wishes to inherit the pub.

“While it must be acknowledged that some pubs are doing a thriving business, the findings of our survey underscore the urgency of the situation for many others,” Vintners Federation of Ireland president John Clendennen said.

“With such a significant portion of publicans looking to exit the industry, combined with a lack of succession plans, we risk losing many of our cherished local pubs unless decisive action is taken.”

Along with a re-evaluation of a living wage’s impact on small businesses, the Vintners Federation of Ireland is seeking: 

• The return of targeted relief measures including a reduction in employer’s PRSI; 
• A reduction in alcohol excise duty; 
• A commitment to set the hospitality Vat rate permanently at 9%. 

They also want to see the development of a transition scheme for new entrants and next-generation publicans to encourage streamlined succession and ensure pubs remain viable in towns and villages.

“These pubs are more than just businesses; they are the heart of many of our communities, offering a place for social interaction, celebration, and tradition,” Mr Crotty said. 

“Supporting them through these challenging times is essential not just for the pub owners but for the cultural and social fabric of the country.”