The National Minimum Wage is to rise to €10.10 from February, on the back of an improved economy and greater clarity on Britain's exit from the European Union.
The decision comes after the Government accepted a recommendation from the Low Pay Commission in October to increase the minimum wage by 30 cents per hour.
The move means that an employee on minimum wage who works a full 39-hour week will receive an additional €11.70 per week, or an extra €608.40 gross per year.
Minister for Employment Regina Doherty said that to ensure the increase did not result in employers attracting a higher level of PRSI charge – the employer PRSI threshold will increase from €386 currently to €395.
Third highest
Since 2015 the minimum wage has risen 13.2 per cent with the Republic currently having the third-highest hourly national minimum wage rate in the EU.
“All types of work should pay well and it is my determination that a job should really lift people out of poverty. The ongoing increases in the minimum wage help to ensure that happens,” said Ms Doherty.
