The Minister for Labour Affairs, Tony Killeen, has accepted a Labour Court recommendation to increase the minimum wage from €7 to €7.65 from 1 May.
In a statement, the minister said that the rate of increase in the minimum wage had fallen behind increases in average earnings up to 2003.
He said the increase in February last year, added to this year's rise, would bring it back into line.
Mr Killeen said 'this increase will benefit low paid workers in our society. In particular, it will be of benefit to part-time workers and younger workers.'
The minister also confirmed that a publicity campaign involving all the main media is to be conducted to raise awareness of the increase in the National Minimum Wage.
CCI slams increase
The Chambers of Commerce of Ireland have criticised the increase, saying it will cost Irish businesses up to €250,000 per hour.
CCI Chief Executive John Dunne said that while 65 cent per hour might not seem like a huge amount, when applied to 57,000 workers it would instantly add €45,000 per hour onto the payroll of Irish business.
However, he added that the increase took no account of potential knock-on effects on wage levels of other staff, which he estimated would cost business an extra €250,000 per hour.
Mr Dunne also said that the increase bore no relation to the current inflation rate of 2.6%. He described the timing of the increase as extremely irresponsible and said it would cost jobs.
He said the minimum wage should be negotiated as an integral part of each national wage agreement.
