Irish publicans say the shift to a living wage will raise Bank Holiday pay to almost €35 per hour for junior staff.
Concern over the projected increases in labour costs will be front and centre of the Vintners Federation of Ireland AGM in Jackson’s Hotel, Ballybofey today.
Pat Crotty, CEO of the VFI, expressed deep concern over the projected increases in labour costs due to the planned shift to a living wage by the start of 2026. “If we move to a living wage within 18 months, bank holiday pay will be almost €35 per hour for our most junior staff. Such costs are simply unsustainable for our members and could severely impact the ability of pubs across Ireland to operate viably,” he says.
Vintners say that unsustainable labour costs and the escalating overall cost of doing business is forcing many publicans to consider retirement in the next two years.
A recent survey reports that 36% of pub turnover is currently consumed by labour costs alone and that figure will increase to over 40% with the introduction of a Living Wage.
Moreover, the survey reveals a worrying trend about the future of the pub trade, with 37% of publicans considering retirement within the next two years and a staggering 84% reporting that no family member wishes to inherit the pub.
The Federation is calling on the Government to introduce key supports to ensure the sustainability of this critical hospitality sector.