Retail group slams another rise in minimum wage

Retail Excellence Ireland (REI), the largest representative body for the retail industry in Ireland, has said that the planned increase in the minimum wage to €14.15 on January 1, 2026, is a “short-sighted and anti-business” measure which will lead to many business closing their doors and job losses.

The increase in the minimum wage was announced today (Tuesday) as part of Budget 2026 equates to 29.5K per year for a full time employee.

Speaking today, Jean McCabe, CEO of REI, said: “It is scarcely believable that the minimum wage will rise yet again to a wholly unsustainable level, with nothing to support retailers trying to manage this increase. This latest hike means the statutory minimum wage will have increased by 44% in the six years from January 2020 to January 2026. In comparison, the average cost of living in January 2025 was 19.8% higher than in January 2020. The minimum wage has risen at double the rate of inflation. This discrepancy is having a major negative effect on an industry that employs a disproportionate amount of minimum wage workers.

“Retailers are already under intense pressure from a variety of costs including the standard rate of VAT and PRSI as well as persistently high energy bills, the introduction of statutory sick pay and the pending introduction of pension auto-enrolment. We saw a 112% increase in store closures in Q2 this year compared with the quarter before, and this rate will accelerate even further as a result.”

Ms McCabe said that opposition to the measure was not in any way anti-worker. “Business owners want to look after their people. But the harsh reality is that many minimum wage workers will not have jobs to go as many businesses are not in a position to shoulder these cost increases alone. Any gains for employees as a result of this Budget will be short lived.”