SFA Urges Government to no increase in the Minimum Wage in Pre-Budget Submission 2027
Yesterday, the Small Firms Association has called on Minister Burke to reject proposed National Minimum Wage increases in Budget 2027 to protect small enterprise viability amidst spiralling operational costs. Between 2016 and 2026, Ireland’s minimum wage rose by 54.6% (from €9.15 to €14.15), significantly outstripping cumulative inflation (~25%). SFA’s 2026 Small Business Survey reveals that 80% of small firms face severe cost pressures, with 51% identifying rising costs as their primary threat. Yesterday morning, SFA Director David Broderick participated in a debate on the National Minimum Wage with Social Justice Ireland on the ‘Today with David McCullagh’ on RTE Radio One.
The SFA’s Key Pre-Budget Recommendations are as follows:
- PRSI Relief: Defer planned 0.3% PRSI increases and introduce a temporary, targeted PRSI rebate for lower-earning staff via PAYE Modernisation.
- Tax Cuts & Simplification: Reduce CGT from 33% to 20%, lower commercial Stamp Duty to 4%, simplify corporate tax and R&D credits, and raise the Small Benefit Exemption to €2,000.
- Administrative Burden: Shift Enhanced Reporting Requirements (ERR) tracking to monthly reporting cycles.
- Energy & Skills: Subsidise electricity policy costs and allocate €50m from the National Training Fund surplus toward Skillnet and AI upskilling.
If you have any questions, please contact Jonathan McDade at jonathan.mcdade@sfa.ie.
