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.

Sharp Rise In M9 Collisions With Garda Call-Outs Up Year-On-Year
Councillor Seeks Clarity On How Often Nightclubs and Late Bars In Naas Are Inspected For Fire Risks
New Figures From CSO Reveal How Much International Protection Applicants Earn Compared To Average Worker In Ireland
Unpaid Eight-Month Work And Training Placement For Adults With Disabilities Branded "Extremely Unfair"
Department Of Education Defends Kildare SNA Cuts Amid Claims Of Reduced Need At Some Schools
Naas Nurses Threaten Escalation As Staffing Row Deepens
Driving Tests Face Disruption As RSA Testers To Strike Next Week
Jury Delivers Not Guilty By Reason Of Insanity Verdict In Ballyfin Demesne Strangling Case