The Low Pay Commission is expected to recommend to the Government that it increases the minimum wage next year by 12%.
This would be a rise of €1.40 an hour, bringing the rate from €11.30 to €12.70.
Last year, the Government announced plans to introduce a new national 'living wage' to replace the minimum wage by 2026.
It will be phased in over a four-year period starting this year and will be set at 60% of the hourly median wage.
In 2023, it is estimated that 60% of median earnings would equate to approximately €13.10 per hour.
The minimum wage increased by 80c on 1 January, 2023 to €11.30 per hour.
This will be followed by gradual increases until the minimum wage reaches 60% of hourly median earnings.
Business group Ibec said that while it accepts the Government's decision to introduce a living wage, if companies are to viably implement the changes, they will need competitiveness and transition supports beginning in Budget 2024.
"Government must deliver a comprehensive support programme for companies that will struggle with the introduction of the living wage, which should be phased in to avoid shocks to any industry and promote sustainable employment," said Maeve McElwee, Executive Director of Employer Relations at Ibec.
"These supports should include increasing the top-rate employer PRSI threshold above the new Living Wage annually and the introduction of a temporary PRSI employer credit applying to lower earning workers, relative to the increases in weekly labour costs which will occur in 2024, 2025 and 2026," Ms McElwee said.
In its submission to the Low Pay Commission, the Irish Congress of Trade Unions (ICTU) called for the national minimum wage to be increased in January 2024 by €2, making the hourly rate €13.30.
"If reports today of a 12% recommended increase are correct, we welcome it," said ICTU General Secretary Owen Reidy.
"Minimum wage workers have been disproportionately impacted by the cost-of-living crisis, they have been hit the hardest."
"A 12% increase is not as much as we would have liked but it is going in the right direction and it does address some of the poorer increases we have seen in previous years which in some cases were lower than inflation," Mr Reidy said.
The Low Pay Commission's 12% recommended increase to the minimum wage was first reported by The Irish Times.
A spokesperson for the Department of Enterprise, Trade and Employment said that Minister Simon Coveney received the report of the Low Pay Commission earlier today and will now consider it in its entirety before bringing a recommendation to the Government in the autumn.
