Dublin Pubs and Restaurants Face Tough Decisions Amid Minimum Wage Hike Discussions

A recent survey conducted by the Licenced Vintners Association (LVA) has shed light on the challenges facing Dublin pubs as the Government considers increasing the minimum wage. According to the survey, nearly half of Dublin pubs believe they will have to raise prices if the planned minimum wage hike goes ahead. Additionally, 36 per cent of surveyed pubs expressed concerns about having to reduce staff, while 21 per cent stated that they will hire fewer new employees than previously planned.

The Government’s commitment to introducing a national living wage by January 2026, with an 80-cent increase to the minimum wage set to take effect next year, has sparked apprehension among Dublin publicans. The current minimum wage stands at €12.70 per hour, and 46 per cent of pubs fear the need to increase their prices in response to the proposed changes.

The survey also revealed widespread unease among Dublin publicans regarding the pace of Government-mandated changes to employment conditions. An overwhelming 96 per cent of publicans feel that the planned increases to minimum wage, changes to sick pay and employers’ PRSI, and the introduction of pension auto-enrolment are happening “too much, too fast.” Furthermore, 94 per cent of respondents desire a more measured approach to implementing the living wage.

In addition to concerns about wages and employment conditions, the survey highlighted other pressing issues faced by Dublin pubs. Almost two in three pubs experienced an increase in their insurance premiums at their most recent renewal, while 15 per cent said it is no longer profitable to open seven days a week. The survey encompassed the viewpoints of over 350 pubs across Dublin, providing a comprehensive glimpse into the challenges confronting the capital’s hospitality sector.

Sharing his perspective on the survey findings, LVA CEO Donall O’Keeffe emphasized the overwhelming burden placed on hospitality businesses by the escalating costs imposed by the Government. O’Keeffe stressed that the recent increases in VAT, sick pay, employers’ PRSI, and the minimum wage, coupled with the prospect of further hikes, have created an unsustainable environment for hospitality businesses. He expressed that the rapid pace of regulatory changes has led to numerous closures within the sector.

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Asserting the urgency of the situation, O’Keeffe called on the Government to decelerate the implementation of proposed changes, advocating for the introduction of a living wage over five years, beginning in 2025. He also urged for moderation in the minimum wage increase for 2025, aligning it with inflation to mitigate adverse repercussions on the sector and the economy at large.

Furthermore, O’Keeffe highlighted the need for the Government to support the sector through measures that enhance competitiveness, such as revising the VAT rate for food purchases to 9 per cent and reducing excise rates on alcohol.

The survey’s findings underscore the need for a balanced approach to addressing the challenges faced by Dublin pubs, considering both the welfare of workers and the sustainability of businesses. As discussions surrounding the minimum wage and related policies continue, finding a solution that supports the vital hospitality sector while fostering economic resilience remains imperative.