Ian Guider: Government is tone deaf on impact of benefits increases for workers on small firms

Comment Ian Guider: Government is tone deaf on impact of benefits increases for workers on small firms

It is hard to argue that lifting people out of poorly paid employment and ensuring they have some sort of provision for retirement is not a good idea. A joint Department of Enterprise, Trade and Employment and Department of Social Welfare report published last week – with the snappy title of An Assessment on the Cumulative Impact of Proposed Measures to Improve Working Conditions in Ireland – points out that Ireland has been a laggard when it to lifting conditions of those on the lowest incomes.

The report details how the hikes to minimum pay that have come into effect and other planned changes will impact small firms. According to the data, a small hospitality business would see payroll costs rise by almost 20 per cent by 2026 compared with today. When the transition to the living wage is factored in, labour costs would be 36 per cent higher in 2026.

When it comes to SMEs the government either believes the money is there or is oblivious to the financial situation many are in. It’s probably a mix of both, which is rather bizarre because the data is there to show that a good chunk of these companies aren’t sitting on enormous profits. The Department of Enterprise, Trade and Employment unveiled €5,000 cash grants for firms to help tide them over various costs. According to calculations sent to me by a SME group, that would cover the gross increase of the January minimum wage rise for 1.6 workers for a single year. They are going to need more help in the years to come.

Ireland Latest News, Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Win A Family Adventure Among The Trees With The Ian Dempsey Breakfast ShowThis week on Ian Dempsey Breakfast Show, we've teamed up with Coillte to celebrate National Tree Week.National Tree Week, proudly supported by Coillte, is ta...
Source: TodayFM - 🏆 26. / 51 Read more »

Red C Poll: Sinn Féin stem sharp fall in support but no bounce for government partiesSinn Féin has managed to stem the sharp and steady slide in its poll numbers in recent months, with today’s Business Post/Red C poll showing a three-point growth in its support to 28 per cent. The party has stretched its lead over Fine Gael which, at 20 per cent, is unchanged from last month’s Red C poll. Fianna Fáil, meanwhile, has dropped one point to 16 per cent. The figures will come as a relief...
Source: businessposthq - 🏆 8. / 71 Read more »

Government should provide greater financial support to parents during early childhood yearsSeventh Early Childhood Ireland Barometer shows widespread support for access to early years and school-age care for all children
Source: IrishTimes - 🏆 3. / 98 Read more »

Record number of people at work boosts Irish Government's financesStrong income tax receipts linked to having a record 2.71 million people at work have boosted the Government’s finances at the start of the year. The latest exchequer returns show income tax generated €5.3 billion in January and February this year, which was 5.7 per cent up on the same period last year.
Source: IrishTimesBiz - 🏆 6. / 77 Read more »

Government confirms date that parents will be in line for €300 cash boostThe government have revealed the details of the extension of the Free Education Scheme which will see free school books provided for Junior Cycle post primary students
Source: RSVPMagazine - 🏆 7. / 76 Read more »

Government set to approve large benefits cuts for Ukrainian refugeesThe Irish government are set to approve reductions in benefits paid to refugees fleeing war-torn Ukraine, according to reports.
Source: JOEdotie - 🏆 31. / 51 Read more »