Wave of pay rises on the way as majority of employers plan hikes

Around 84pc said their employer plans to increase wages in 2025.

The survey revealed the average expected pay rise will be around 3.4pc next year.

Today's News in 90 seconds - 20th September 2024

However, Ibec found 23pc of businesses outside of the hospitality sector with fewer than 50 employees will not boost salaries next year.

It also reported that 85pc of businesses featured in the survey had already boosted basic pay this year.

The average increase for 2024 was around 4.1pc.

The sectors that saw the largest pay increases this year were tourism and ­retail. This followed changes in the ­national minimum wage, Ibec said.

"Despite easing inflation, wages are expected to continue rising, following trends seen in recent years," Ibec executive director of employer relations Maeve McElwee said.

"This is largely driven by changes in the minimum wage and increased competition for talent," she added.

Businesses recorded an average staff turnover rate of 8.3pc this year. This was below the rate of 9.7pc reported in 2023.

Around 41pc of respondent companies also stated that they plan to increase staff numbers next year. This planned rise is being driven by increased production and demand, as well as business expansion.

Companies are focused on building the future supply of talent.

However, the increase in headcount next year across the companies featured in the report is not expected to be as high as the growth recorded in 2024, Ibec found.

The average increase in overall staff numbers is anticipated to be around 7.2pc in 2025, down from a 9.4pc increase this year.

This slowdown was attributed to "higher operating costs, recruitment challenges, and slower global growth", while skill shortages remain a challenge for some industries.

"Employers – and Ireland as a whole – must continue to innovate in strengthening the talent pipeline," Ms ­McElwee said.

"This includes expanding workforce accessibility by supporting those with additional caregiving responsibilities, ensuring that Ireland remains an attractive place to live and work without being constrained by inadequate public investment, and focusing on upskilling to manage the impact of digitisation and AI on our economy."