Recent research indicates an increase in cash-in-hand payments for employees in the hotel and catering industry, reports RTE.
According to Excel Recruitment’s 2025 Salary Guide for the hospitality sector, some businesses are resorting to cash payments as they strive to manage their budgets.
Excel warns that the rise of cash-in-hand payments could lead to a growth in the black market, posing risks to businesses that do not offer such payments amid intensifying competition for staff.
The report emphasizes that the hospitality sector will experience significant financial pressure in the upcoming year due to the minimum wage increase to €13.50 per hour set for January 2025, reports RTE.
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This situation follows the recent increase in sick pay, PRSI contributions, and pension obligations.
The 2025 salary guide forecasts notable changes in wages for both entry-level and supervisory positions, while salaries for management are expected to remain largely stable.
Furthermore, the report reveals that companies in this sector are increasingly dependent on staffing agencies and automation to manage rising expenses while meeting customer demands, reports RTE.
“The hospitality industry finds itself at a pivotal moment,” remarked Shane McLave, Managing Director at Excel Recruitment.
“With approximately 600 to 700 hospitality venues shutting down in the past year alone, it is not surprising that nearly everyone we encounter in this sector is worried about its future viability,” he continued.
“Organizations have no choice but to make tough choices to stay afloat, which carries significant consequences for both their employees and customers,” Mr. McLave stated, reports RTE.
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