The minimum wage will increase by 30c an hour from the start of next year, Taoiseach Leo Varadkar has confirmed.
The announcement, made yesterday by Mr Varadkar, Tanaiste Frances Fitzgerald and Minister of State for Disability Issues Finian McGrath, was based on recommendations from the Low Pay Commission.
Mr Varadkar said the minimum wage will rise to €9.55 per hour from January 1.
"We discussed about 55 different items at the Ccabinet meeting this morning, but one of the items was a report from the Low Pay Commission on the national minimum wage," he said."
The Taoiseach welcomed the report's recommendations, which will see a 3.2pc increase in the national minimum wage.
"It's an increase well ahead of inflation, well ahead of average wage growth in the economy. It's modest. It works out at about an extra €12 per week, but it is still an important step in the right direction," he said.
This will be the second increase to the minimum wage since this Government involving Fine Gael and Independents came to office, with a 10c increase last year.
Mr Varadkar said it will also be the fourth rise in the past five years.
The Taoiseach said the cost mostly falls to employers and that, combined with an increase in income from taxes on wages, the actual cost to the Exchequer "will be quite small".