84% of businesses to increase pay in 2025 – survey
New research shows that 84% of businesses are planning to increase pay in 2025, with respondents forecasting an average increase of 3.4% across all business sectors.
Business group Ibec has published the first part of its annual HR Workplace and Trends report showing that 85% of respondents increased basic pay by an average of 4.1% in 2024.
The sectors that saw the largest pay increases were tourism and retail, reflecting changes in the minimum wage.
Almost a quarter of smaller businesses, with fewer than 50 employees, outside of the hospitality sector said they will not increase salaries in 2025.
The average increase in overall headcount in workplaces is predicted to taper off from a peak 9.4% in 2024 back to 7.2% in 2025.
According to the study, the primary drivers of additional headcount are increased production/demand, business expansion, and building the future supply of talent in workplaces.
The report indicates that businesses in Ireland had an average staff turnover rate of 8.3% in 2024, down slightly from 9.7% in 2023.
The survey was conducted with over 400 senior HR professionals.
“Despite easing inflation, wages are expected to continue rising, following trends seen in recent years,” said Maeve McElwee, Ibec’s Executive Director of Employer Relations.
“This is largely driven by changes in the minimum wage and increased competition for talent.”
“While hiring may be slowing due to higher operating costs, recruitment challenges, and slower global growth, skills shortages in certain areas are likely to persist,” Ms McElwee said.
Article Source – 84% of businesses to increase pay in 2025 – survey – RTE
