Surge of cash-in-hand pay in hospitality sector

There has been a rise in the use of cash-in-hand payments for staff in the hotel and catering sector, according to new research.

Excel Recruitment's 2025 Salary Guide for the hospitality sector has found that as businesses struggle to balance budgets, some have started paying cash to workers.

"With some establishments turning to cash-in-hand payments, black market growth is a risk that threatens the businesses that don’t offer cash-in-hand as competition for staff continues to heat up," according to Excel.

The report highlights that the hospitality sector faces mounting financial strain next year as the minimum wage rises to €13.50 per hour in January 2025.

This comes in the wake of increased sick pay, PRSI contributions, and pension requirements.

The 2025 salary guide predicts noticeable adjustments in wages for entry-level and supervisory roles, while management salaries remain mostly unchanged.

The report also found that businesses in the sector are increasingly relying on staffing agencies and automation to balance rising costs with customer expectations.

"The hospitality industry is at a crossroads," said Shane McLave, Managing Director at Excel Recruitment.

"With anywhere between 600 and 700 hospitality venues closing in the last 12 months alone, it’s not a surprise that just about everyone we meet in this sector is concerned about its sustainability," he added.

"Businesses are being forced to make difficult decisions to survive, which has significant implications for both employees and customers," Mr McLave said.