Dáil Éireann Debate, Tuesday - 7 October 2025
161. Deputy Carol Nolan asked the Minister for Enterprise, Tourism and Employment if he will support the Budget 2026 requests of an organisation (detail supplied); and if he will make a statement on the matter. [53843/25]
View answerThank you for the question to which there are a number of parts that I can address. On the issue of the National Minimum Wage, clearly one key input is the annual report of the Low Pay Commission. I received this report, which includes their recommendation for the 2026 National Minimum Wage, in July and this is under consideration. The Commission has an evidence-based approach to arriving at its recommendations and the Programme for Government includes the commitment that this Government will recognise the work of the independent Low Pay Commission. There is clearly a balancing act between the need of workers and employers.
After careful consideration and as part of the measures designed to bolster business resilience and support competitiveness, the Government earlier this year, adjusted the implementation timeline for the living wage from 2026 to 2029. This decision was not taken lightly. Government remains committed to fair wages for all workers and I would still expect that the minimum wage will increase over the coming years, but it is important that we manage these increases in a way that does not damage employment or competitiveness.
With regards to the PRSI and VAT proposals, I would note the following commitment in the Programme for Government 2025 – Securing Ireland’s future, in Supporting Small Business, Hospitality and Retail:
“The Government will bring forward measures to support SMEs, in particular the retail and hospitality sectors, acknowledging the increased cost pressures on these sectors and this will entail changes to VAT, PRSI and other measures. These measures will be implemented as part of the normal budget process”
This is a very welcome commitment, which I fully support. Any decision on these measures are to be considered as part of the budgetary process and any changes to measures for the forthcoming Budget will be announced on Budget day, Tuesday 7 October 2025.
In other measures to support SME’s I have established the Cost of Business Advisory Forum, which is a Programme for Government commitment. The Forum comprises of SME & Industry representative organisations, Regulatory/State Bodies and Government Departments who jointly consider issues that can lead to higher costs for businesses at a regional and national level in Ireland.
To date, the Forum has met to examine Energy Costs and the Security of Supply and is reviewing feedback from September’s meeting on Insurance costs. The remainder of 2025 and early 2026 meetings will examine Regulatory Burden, Planning, and Infrastructural Delivery. Public Utilities: Water Costs, Legal Services, Reporting and Compliance.
The final objective of the Forum is to present a report to Government in late Q1 2026, that will outline its findings and highlight those steps that can be taken to mitigate issues arising from increased costs or any associated regulatory or infrastructural issues that merit a changed approach.
The introduction of statutory sick leave was also a key policy development. For the first time in Ireland, employees have a statutory right to employer-paid sick leave. From 1 January 2024, the number of statutory sick leave days increased from 3 to 5. The public health benefits of paid sick leave are well established and are a key part of the policy underpinning this Act. This policy is a public health measure that protects fellow employees and members of the public generally, including by reducing the risk of workplace accidents and the likelihood of infectious disease transmission in the workplace.
However, it is also important to recognise that the introduction of any new form of employer paid leave does create a burden on business. In 2024, in line with the requirements of Section 6 of the Sick Leave Act 2022, and to inform the decision in respect of the next phase in the rollout of the statutory sick leave scheme, further research was conducted by the Irish Government Economic and Evaluation Service and my Department on the impact of sick leave to date.
This research included a comprehensive, firm-level survey and interviews to capture the views of businesses and employee representative groups. A stakeholder workshop was also held with employer representative groups, who communicated their members’ experiences and perceptions of statutory sick leave.
Following due consideration, it was decided that it was appropriate to maintain the sick leave entitlement at five days. This provides income protection for those five days in a calendar year should employees be unfit to work, paid at 70% of gross earnings, up to a daily cap of €110.
