Taoiseach Enda Kenny has said any considerations about raising the National Minimum Wage (NMW) will take into account the impact such a move would have on employers.
On Saturday it emerged the Low Pay Commission is expected to recommend a rise of 50c per hour to the minimum wage, bringing the rate from €8.65 to €9.15 per hour.
Mr Kenny said the Government would reflect very carefully on the findings and recommendations of the commission's first report.
Speaking in an interview with Midwest Radio in Co Mayo, Mr Kenny said any increase of the minimum wage would have an effect on pay roll costs.
He said it was important to counter the impact on employers by making adjustments to PRSI or other charges and that the Government would put together a package that would balance these things out.
He also denied that he was in election mode and said his focus was on the full implementation of the Programme for Government.
He said one of the priorities in this regard was ensuring that people in all parts of the country experienced economic improvement.
The Taoiseach reiterated the Government's goal of taking 500,000 people out of the requirement to make USC contributions in the forthcoming Budget.
When the election was called, he said that he believed people would reflect on the progress that had been made in the last number of years.
Mr Kenny said solid steps had been taken to improve the health service, enhance broadband provision and assist small business.
He said water charges had been introduced as an alternative to increasing income tax to pay for infrastructural improvements. Mr Kenny described the fees to house holders as "very modest".
He said the coalition's report card would say there were more challenges ahead for the county and he said he was "up for that in a big way".
Minister for Jobs Richard Bruton echoed the Taoiseach's comments.
Speaking at a jobs announcement for Irish firm Abtran in Dublin, Minister Bruton said decision on the minimum wage will have to take into account the impact on the cost base for businesses.
He added that the economy is growing and the Government would like to see that shared.
IKEA confirms introduction of living wage for Irish staff
Meanwhile, IKEA has confirmed it will be introducing the living wage for all staff at its Irish store in Ballymun. The Swedish furniture chain is also to introduce the living wage across its UK stores.
The 2015 Living Wage for Ireland is €11.50 per hour. A spokesperson for IKEA said it would be working over the next nine months to introduce the living wage.