Should the minimum wage be raised? · TheJournal.ie

The recommendation by the commission, whose members include business groups and trade unions, would represent a 5.8 percent rise and would mean an annual increase of 1,000 euros for workers on the minimum wage.

IBEC says the move would put pressure on businesses that are already struggling.

Ibec CEO Danny McCoy said: “Given the economic evidence available, it is inexplicable how such a rise could be proposed”. Is it too soon for wage increases?

“Many businesses still can not afford pay increases and turnover in sectors such as retail remains up to 20% below the pre-crisis peak”. She said he was “happy with the recommendation” and will be “strongly recommending it” to the government.

“The knock-on impact of a rise on wage expectations across the economy is a real concern”, he said.

“We continue to call for other methods of increasing net pay such as reductions to the marginal tax rate and USC and improved affordability of childcare”.

However, Sinn Féin has said that this increase is not enough, and will only amount to €19.50 extra to a 39 hour week for an employee on minimum wage.

The latest business trends survey from the Irish Small and Medium Enterprises Association (ISME) featured rising sentiment in 10 out of the 12 indicators it measured.

Prices were still below where they were in 2008 so the real value of the minimum wage had increased during the financial crisis, McCoy said.