Employers have argued there is no justification for further increases in the national minimum wage.
The minimum wage increased by 50 cent to €9.15 from the beginning of January. The Low Pay Commission is to look at the rate again later this year under an annual review.
In a submission published on Sunday, the employers group Ibec argued the 50 cent increase recommended by the commission in 2015 was a “mistake” and that it should be cautious in its approach this year.
Ibec said the minimum wage in Ireland was 7 per cent higher than in the UK and there was no justification for any increase. It warned a British exit from the EU could result in a major sterling depreciation, causing this gap to increase to 40 per cent.
Competitiveness threat
Ibec director of employer relations Maeve McElwee said: “The significant rise in the minimum wage last year, along with heightened global economic uncertainty means there is no basis for a further increase at this time. At a time of zero inflation, it would be a massive mistake to undermine our competitiveness position through unwarranted pay rises. The focus must be on maintaining competitiveness and creating jobs.
“Even before a vote, the UK referendum is already having a significant impact on exchange rates. Uncertainty has pushed the value of sterling lower . . .”
Ms McElwee argued the 2015 increase undermined the case for a further rise this year: “The 2015 decision led to an increase in the minimum wage 6 per cent ahead of inflation and 4 per cent above average wage increases in the economy. The real value of the minimum wage is now 27 per cent higher than when it was introduced.”
