The Small Firms Association is warning against putting up the National Minimum Wage.
The business body says recent increases are costing small companies over €20,000.
The Low Pay Commission will announce this week it's recommendation to the Government on whether to raise it.
SFA Director Sven Spollen-Behrens says costs are spiraling for firms.
"The costs are shooting up. It's insurance costs, it's commercial rates, it's wage bills - we are living in a time of full employment," said Mr Spollen-Behrens.
"Our small businesses are already increasing the wages. Whether or not wages should go up is not a government decision, in our opinion, it should be the decision of every individual business."