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.

Day Of Talks Between Trade Unions, Employers and Government Concludes
Strait Of Hormuz Fully Open To Shipping During Ceasefire
Kildare Farmer Wins Teagasc Farm Forestry Award
Naas Library And Cultural Centre Chosen As One Of The Venues To Host The 1926 Census Exhibition
Trade Unions Meeting Employers And Government Today Over Rising Cost-Of-Living
Taoiseach Leadership Under Continued Pressure
Figures Reveal Kildare County Council Spent Over €500,000 Cleaning Up Illegal Dumping In 2025
Taoiseach's Leadership Facing Renewed Pressure As Fianna Fáil Members Call For Parliamentary Meeting