It says it will lead to a 2.5% rise in the price of groceries.
Raising the minimum wage would see household expenses go up too according to the ISME.
The Irish Small and Medium Enterprise Association is warning the proposed increase of 12.4% to the minimum wage is "unsustainable".
It says it will lead to a 2.5% rise in the price of groceries.
CEO of the ISME Neil McDonnell explains how.

€1.2m Approved For Zipline And High Ropes Adventure Centre At Donadea
Christmas Appeal To Adopt Dogs As Euthanasia Figures Rise
Speed Enforcement To Increase In Kildare With 21 New Camera Zones To Be Rolled Out In January
Over 400 Motorists Caught Speeding So Far Today, Including A Driver In Kilcock
Transport Minister In Discussions With Irish Rail About Extending Late-Night Trains Beyond Christmas
Tadhg And Mary Should Be Looking Forward To Christmas, Say Gardai As Fresh Appeal Launched
Bus Shelters Treated As Luxury Rather Than Standard, With 500 Kildare Bus Stops In Need Of Upgrades
Recruitment Announcements Don’t Add Up As Garda Numbers Stagnant In Kildare South, Says Local TD