A “strong package” to support under pressure SMEs has been brought forward by Enterprise Minister Peter Burke.

The package includes measures to help reduce the cost of employment and focuses on areas like minimum wage, PRSI, holidays and sick pay.

It follows spiralling energy costs and inflation over the last two years that’s left many small businesses feeling the pinch.

On Newstalk Breakfast, Minister Burke hopes the new package can reduce the pressures they are feeling.

“I think this is a very strong package to bring forward to support businesses, there are 15 separate intervention points contained in the package,” he said.

“One is in relation to PRSI and what that will do is ensure well into the future that any recommendations brought forward by the Low Pay Commission, in relation to the increase in living wage, that those who are on minimum wage will not be paying the higher rate of PRSI.

“That’s important in terms of the cost of employment into the future.”

SMEs sustainability

Minister Burke said sustainability measures will also provide help.

“We have other measures which are also very important for SMEs in relation to sustainability, like our energy grants which we are trying to assist businesses with the cost of LED lighting, refrigeration costs and upgrading kitchens,” he said.

“That can improve utility bills every month in terms of reducing cash flow by up to €1,000 and indeed more in certain cases.”

Signage at Department of Enterprise on Kildare Street. Image: KarlMPhotography / Alamy Stock Photo

The Enterprise Minister dismissed suggestions that social welfare supports were discouraging people from working.

“If you look at the labour market at the minute, that’s true to some extent but it’s not the whole picture,” he said.

“We have over 2.7 million people employed in this country at the moment, up 50,000 in the last 12 months.

“It shows the labour market is very strong; unemployment is at under 5% since January 2022 and that has been consistent.

“You’re talking about a very small amount of people that are currently on the Live Register.”

SMEs account for over 99% of all enterprises in Ireland.

Main image: Minister Peter Burke on the plinth at Leinster House. Photograph: Sam Boal / RollingNews.ie