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Dublin pubs to cut staff numbers if minimum wage increases

Over 350 pubs took part in the survey carried out by the Licensed Vintners Association (LVA)
Over 350 pubs took part in the survey carried out by the Licensed Vintners Association (LVA)

36% of pubs across Dublin would cut their headcount if the Government increases the minimum wage, a new survey shows.

A further 21% said they would hire less new staff than previously planned.

Over 350 pubs took part in the research carried out by the Licensed Vintners Association (LVA), around half of the pubs in the capital.

The minimum wage is currently €12.70 per hour. The Irish Independent last week reported that the Low Pay Commission has recommended increasing the basic pay rate to at least €13.70 next year.

Almost half of the Dublin pubs surveyed believe they will be forced to increase their prices if the Government continues with their plans to significantly increase the minimum wage over the next few years.

Meanwhile, 96% believe the Government mandated changes to employment conditions, such as the planned increases to minimum wage, changes to sick pay and employers' PRSI, as well as the pension auto-enrolment, represent "too much, too fast".

A similar proportion said they want the Government to slow down the introduction of the "living wage".

The survey also showed that 64% of Dublin pubs received an increase in their insurance premium at their most recent renewal, while 15% said it is no longer profitable to open seven days a week.

"Over the last year there have been increases in VAT, sick pay, employers' PRSI and minimum wage, with significant further increases to come," said Donall O'Keeffe, LVA CEO.

"This simply isn’t sustainable and it should come as no surprise that so many hospitality businesses are closing in this environment," he added.

The research also revealed that over 80% of pubs in the capital receive more card payments than cash.

Just 11 out of every 100 pubs surveyed indicated they still receive more cash payments.