Business leaders are hitting out at the timing of the increase in the national minimum wage.
The first in a series of two hikes comes into effect today.
The minimum wage has been increased to €8.30 per hour and it will go up again on the July 1.
"We have one of the highest minimum wages in Europe, there's no doubt about that,” said Sean Murphy, spokesperson for Chambers Ireland.
“It is a fact that this is an expensive economy. But the real concern is the timing of increases directly impacts upon other salary negotiations as they take place throughout the year.
“In particular the second wave of the increase could, interpreted wrongly, have a very negative impact on wage inflation because of its knock on effect on salaries above the minimum wage.”