An estimated 195,000 workers would immediately benefit from tomorrow’s 80 cent hike in the minimum wage to €13.50 per hour, reports RTE.
Many small firms, however, are cautioning that this will be the most recent in a string of cost rises and that, in the end, the customer may be forced to pay more.
The Brown Sugar hair salons in Dublin are owned and operated by Mark O’Keeffe.
“This is another increase in the minimum wage and it means it has gone up by 36% since 2020. It’s becoming very challenging for us to absorb because to have deal with other new costs like sick pay, pension auto-enrolment and the fact that our suppliers have put up their prices as well,” Mr O’Keeffe said, reports RTE.
Some members of the Irish Hairdressers Federation have been forced to pass on their higher expenses to clients, according to Mr. O’Keeffe, an executive member of the organisation.
“Salons are looking at price increases and clients may feel that’s unfair and go elsewhere, which will all be very damaging,” he said, reports RTE.
Some companies claim that raising prices isn’t always an option.
CEO of the Convenience Stores & Newsagents Association of Ireland said: “It isn’t always just a simple case of putting up prices because if your competitor isn’t doing it, you’re not going to do it. Prices are already high and we really don’t need to see them going up even more,” reports RTE.
Ben Connolly works in the hotel industry for minimum pay.
“With the cost of living so high, an increase is definitely needed,” Mr Connolly said, reports RTE.
“Generally, for waiters, waitresses and bartenders, they tend to be younger and on the minimum wage so definitely any increase will really help,” he added, reports RTE.
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