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.