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31st December 2024
10:38am GMT
Around 195,000 workers are set to benefit from this change, but not everyone is celebrating.
Many small business owners say this is yet another financial hit that could push prices up for customers.
Mark O’Keeffe, who owns the Brown Sugar hair salons in Dublin, told RTE that this isn’t just about the minimum wage increase.
“The minimum wage has risen by 36% since 2020,” he explains. "We’re also dealing with other new costs like mandatory sick pay, pension auto-enrolment, and rising supplier prices. It’s getting harder to absorb these costs."
O’Keeffe, who’s on the Irish Hairdressers Federation executive, says some salons are raising prices to cope.
“Clients might think the price increases aren’t fair and go somewhere else, which could hurt us badly.”
For other businesses, passing on the cost isn’t always an option.
The CEO of the Convenience Stores & Newsagents Association pointed out that competitive pricing makes it difficult.
“If your competitor isn’t raising prices, you might not be able to either. Prices are already high, and more increases could push customers away.”
The government says the wage hike is part of a broader package of supports announced in the budget.
As the minimum wage marks 25 years in 2025, the debate continues: how to balance fair pay for workers with the realities small businesses face.
