Retail Excellence Ireland launches campaign to cut employers’ PRSI to save jobs
Retail Excellence Ireland says rising employment costs are putting further pressure on retailers, with 59% of surveyed members reporting cuts to jobs or working hours over the past year
Print10 September 2026
Retail Excellence Ireland (REI), the largest representative body for the retail industry in Ireland, has called on the Government to cut employers’ PRSI in Budget 2027 in order to save retail jobs.
The trade body launched its ‘Cut PRSI, Keep Jobs’ campaign this week, with SME retailers and their employees gathering at locations around the country to highlight the impact of rising costs on the sector.
“The retail industry has been under the most intense pressure from a range of cost pressures in recent times – and wage costs are the primary issue. The industry is now seeing a rapid increase in insolvencies because of these pressures, so Government must now act unless it wants to see more businesses fail,” Jean McCabe, CEO of REI, said.
She added: “we are due to see an increase in employers’ PRSI at the start of October, which will be another blow to SMEs. This cannot happen and, moreover, the rates need to be brought down. This would cost €220 million in year one, rising to €450 million by 2029.”
REI is seeking three measures from Government in next month’s Budget.
The first is the introduction of an 8% employer PRSI rate on the first €36,000 of every wage, reducing to 5% by 2029. REI estimates that the measure would be worth around €1,000 per full-time employee next year, increasing to approximately €2,000 by 2029.
The organisation is also calling for zero employer PRSI for workers under the age of 25, pointing to the UK’s approach to reducing employment costs for younger workers.
Its third proposal is a review of the methodology used to calculate Ireland’s living wage, with REI arguing that the current calculation is disproportionately influenced by wages in the multinational and financial services sectors.
The campaign comes as retailers face another increase in employers’ PRSI.
From the 1st October, the employer PRSI rate will rise to 9.15% on weekly earnings up to €552, with a rate of 11.4% applying above that threshold.
REI says the combination of higher wages and other operating costs is already having a significant impact on employment.
According to a recent survey of its members, 91% reported reduced profitability, while 59% said they had already cut jobs or working hours over the past year because of sustained cost pressures.
The organisation estimates that around 400,000 retail working hours per week have been cut, equivalent to approximately 10,800 fewer jobs in the sector compared with the same period last year.
Retail insolvencies are also increasing. According to figures cited by REI from PwC, retail insolvencies rose by 35% in the first half of 2026, with the sector accounting for approximately one in four Irish business failures.
Young workers a particular focus
REI estimates that around 81,000 retail workers are under the age of 25, representing four in ten young workers nationally.
It argues that removing employer PRSI for this group would reduce the cost of sustaining each young employee by an estimated €1,270 a year.
For the retail sector alone, REI estimates the cost to the State at approximately €105 million, while stressing that the measure would not reduce the employee’s own pay, PRSI record or benefit entitlements.
The organisation says the proposed measures would cost the State an estimated €220 million in the first year, rising to €450 million by 2029.
REI estimates that the Government collected an additional €350 million in PRSI last year from minimum wage increases alone.
REI is now calling for a further step to offset some of the employment-cost increases already absorbed by retailers.
The campaign has been driven by SME retailers who stood together with their own staff as a single visual line at each location this morning.
Read more: Industry Sentiment Survey – shared challenges, different priorities
© 2026, Growtrade.ie by Patryk Goron
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