Forthcoming legislative employment changes together with skills shortages are likely to present a ‘perfect storm’ of challenges for the hospitality sector here next year.

This is according to Excel Recruitment in its 2024 Hotel and Catering Salary Guide which is published today.

The proposed changes include an increase to the minimum wage from €11.30 to €12.70 per hour, plans for pension auto-enrollment as well as an increase in employer-paid sick leave and increases in employer PRSI over the coming years.

In addition, there are proposals to replace the minimum wage with the living wage over the next two years with a minimum hourly pay rate of €15 likely and the recruitment points to the challenges of the lack of rental accommodation which is driving many workers out of the bigger cities.

“Without a doubt, the biggest threat facing the hospitality industry in 2024 is the spiralling cost of employment and not a shortage of staff,” Shane McLave, Managing Director of Excel Recruitment said.

“The wage increases we are seeing are in more junior roles. Positions such as bar staff, waiting staff and catering assistants are what are known as “high volume roles”, meaning that businesses need a lot of staff in these positions in order to function,” he explained.

The salary guide captured healthy pay increases for chefs with the average salary of a second-year commis chef rising by about 14% from €28,000 to €32,000.

A sous chef can expect to earn an average salary of €52,000 in 2024 – up from €47,000 in 2023 – the report concludes, with a junior sous-chef now in line for a typical salary of €45,000 – up from €40,000 a year ago (12.5%).

There have been salary increases across the board in a variety of roles, the report notes.

The average salary for a receptionist has increased from €32,000 to €36,000 while a wedding coordinator can expect to earn €40,000 on average in 2024 – up from €37,500 in 2023.

“Many of our clients report an increase in the standard benefits being offered to their staff, like pensions, extra holidays, four-day weeks, and so on. Employers are consistently finding themselves under pressure to up their game in order to retain and attract staff but given the financial pressure that so many are under and the increased costs employers are facing, this can only go on for so long,” Mr McLave concludes.