Cash in hand jobs are making a return in the hospitality sector in order to cut costs, according to a new guide.
According to Excel Recruitment has published its Hotel & Catering Sector Salary Guide for 2025, the industry faces mounting financial strain next year as the minimum wage rises to €13.50 per hour in January 2025, the number of sick days increases and auto-enrolment begins.
Despite some parties’ promises to reduce VAT for financial relief in the industry, ‘black market growth’ is already a threat to businesses that don’t offer cash in hand, according to the guide.
Crowds of workers and staff along with business owners from the hospitality, tourism, retail and other sectors taking part in a protest towards Leinster House, 15-10-24. Image: Leah Farrell/© RollingNews.ieOn Newstalk Breakfast, Newstalk's Business Editor Joe Lynam said employees should be wary of these job positions.
"If an employee is paid cash in hand, they don't get social insurance, they don't get holiday pay and other benefits and the employer can escape PRSI,” he said.
“So, the advantages for employers are there, but fewer advantages for employees – but a lot of people still love cash in hand.”
According to the Excel Recruitment guide, businesses in the sector are increasingly relying on staffing agencies and automation to balance rising costs with customer expectations.
Ireland's budget
Mr Lynam also said that the EU is unhappy with Ireland’s Budget 2025.
“Since the eurozone crises from the early 2010s, all EU governments must submit their budgetary spending plans to the Commission to it for it to act as an independent adjudicator so as to avoid the excesses that we saw from a few years ago,” he said.
“Paolo Gentiloni – the outgoing Commissioner – says that Irish spending net of taxes will be 16.4% more than they than they should be this year,” he said.
“The Irish government thinks it'll be 15.4%.
“So, they said that the Commission invites Ireland to take the necessary measures within the national budgetary process to ensure that fiscal policy next year is in line with Ireland's medium term fix fiscal structural plan.”
According to Mr Lynam, this means that Ireland is not in line with the guidelines set out by the EU.
