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Increasing the minimum wage

Cost to smaller firms

Letters to the Editor. Illustration: Paul Scott
The Irish Times - Letters to the Editor.

Sir, – The Government’s plan to increase the minimum wage will have the convenient consequence of generating additional tax revenue for it to spend. The proposed rise of 6.3 per cent will lead to the 165,000 workers on the minimum wage earning an extra €1,622 per annum, of which about €460 will be paid in PAYE and USC. This amounts to €75 million in extra taxation for the Government, taken straight out of the pockets of small firms forced to pay the extra wages. – Yours, etc,

THOMAS RYAN,

Dublin 6W.