The TV licence fee will go up by €3 from October next following a review by the goverment.
This increase will give RTE an extra €2m in funding for 2006 and €4m in a full year.
The decision to raise the fee is the result of an independent review of RTE's performance in 2005 by Indecon Consultants which said the national broadcaster had broadly fulfilled its corporate and financial commitments and output commitments on TV, radio, in publishing and performing groups.
The Minister for Communications Noel Dempsey said there was a strong case for approving the increase. He said the extra money will help RTE further strengthen its service.
The increase is less than the current rate of inflation but has been welcomed by RTE. The RTE Authority chairman Mary Finan said the fourth consecutive yearly increase was a vote of confidence in RTE and its programming.
The increase was recommended subject to RTÉ bringing forward proposals in a month, based on the Indecon recommendations, as to how it can provide a greater assurance that it is meeting its commitments to the public and providing value for money, and that it will engage with the Government in relation to its strategic corporate plan.