The Tánaiste has announced that the national minimum wage is to rise by 38 cent an hour from 1 October. The new minimum hourly rate will be €6.35, up from €5.97.
Mary Harney said many thousands of low paid workers would benefit from the rise.
However, the Irish Congress of Trade Unions said the rate was still lagging behind inflation, while the Small Firms Association said the increase could cost jobs.
The minimum wage was introduced in April 2000 at a rate equivalent to €5.58. Family members and the Defence Forces were exempted, while under-18s, first time workers and trainees were subject to a special, lower, rate.
The minimum wage subsequently increased to €5.97 and today's rise brings it to the equivalent of £5 an hour. The special lower minimum rate for under-18s, first time workers and trainees will also go up.
Thousands to benefit - HarneyThe Minister for Enterprise, Trade and Employment said many thousands of low paid workers would benefit from the increase. She will launch an awareness campaign in October.
Although unions welcomed the increase, they warned that the rate still lagged behind that recommended by the original Minimum Wage Commission. SIPTU President Des Geraghty also queried the level of enforcement by the Department of Enterprise, Trade and Employment.
The Small Firms Association criticised the increase, saying it would place an additional burden on employers and could cost jobs. Pat Delaney said the higher wage could make it harder for people to get work, particularly in part time jobs.
Further increases will be considered during the talks on a new social partnership pay deal.
