Good news for Irish workers! Most companies in Ireland are planning to boost salaries next year, according to a new survey by employers group Ibec. The study, which asked 400 senior HR professionals, found that 84% of businesses intend to increase wages in 2025.
Workers can expect an average pay rise of about 3.4% next year. This follows a trend of wage increases, with 85% of businesses already having raised salaries this year by an average of 4.1%.
Maeve McElwee, Ibec’s executive director of employer relations, explained, “Despite easing inflation, wages are expected to continue rising. This is mainly due to changes in the minimum wage and increased competition for talent.”
The tourism and retail sectors saw the biggest pay jumps this year, largely because of minimum wage changes.
It’s not all rosy for everyone, though. About a quarter of small businesses outside the hospitality sector don’t plan to increase pay next year.
On the job front, 41% of companies aim to hire more staff in 2025. However, the overall growth in staff numbers is expected to slow down compared to this year. Businesses are facing challenges like higher costs, recruitment difficulties, and slower global growth.
Ms. McElwee stressed the importance of strengthening Ireland’s talent pool. She suggested supporting workers with caregiving responsibilities, making Ireland an attractive place to live and work, and focusing on upskilling to deal with the impact of new technologies.
According to the Irish Independent, these trends show that while the job market remains strong, businesses are becoming more cautious about expansion in the face of economic uncertainties.