The national minimum wage is to be increased by 25 cent to €9.80 per hour from January 2019, the Cabinet has agreed.
The Low Pay Commission recommendation was accepted by Cabinet at its meeting at Derrynane House in Co Kerry.
The Taoisaech, Leo Varadkar, said it represents the third increase in the minimum wage since the Government involving Fine Gael and the Independents came to office.
The increase is due to be introduced in January.
Mr Varadkar said the increase will put us in the top five in the world for our national minimum wage in cash terms and purchasing power.
However Mr Varadkar also acknowledged that some people will see it as too low.
The issue of student accommodation was also among the topics discussed at today's meeting.
A report from the Minister of State at the Department of Education with special responsibility for Higher Education Mary Mitchell O'Connor pointed out that 3,000 student accommodation units have been built in the last two years.
7,000 are under construction and a further 7,000 have planning permission.
Cabinet agreed to promote digs in the Rent a Room Relief scheme and to work over the summer on legislative proposals to limit the increases in the price of student accommodation.
