Low Pay Commission Recommends increase to National Minimum Wage
According to recent reporting on RTE, small business owners may face another projected rise in payroll costs following a recommendation from the Low Pay Commission to increase the national minimum wage by 5.6% (79 cents), raising the standard hourly rate from €14.15 to €14.94. If approved by Government during Budget 2027 discussions, the new rate will take effect on 1 January 2027.
In the SFA’s submission to the Low Pay Commission, we explicitly called for a complete freeze on the national minimum wage to protect small enterprises struggling with rising operational overheads. The SFA also made its position clear the Low Pay Commission at the Retail Forum in the Department of Enterprise, Tourism & Employment a few months ago.
The proposed increase will also proportionally adjust sub-minimum youth rates:
- Age 19 (90%): €13.45/hr
- Age 18 (80%): €11.95/hr
- Age 17 and under (70%): €10.46/hr
Minister for Enterprise Peter Burke will review the report ahead of the Budget. While the Government is not legally bound to accept the recommendation, it historically follows the Commission's guidance.
We understand that this will impact your business and will be collecting feedback from SFA members. Please contact SFA Director, David Broderick at David.Broderick@sfa.ie.
