Minister for Labour Affairs Tony Killeen has accepted a Labour Court recommendation to increase the minimum wage from €7 to €7.65 an hour from May 1.
In a statement, the Minister said that the rate of increase in the minimum wage, which was introduced in 2000, 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.
* The Chambers of Commerce of Ireland have criticised the increase in the national minimum wage, saying it will cost Irish businesses up to €250,000 an hour.
57,000 workers stand to gain from the increase which will take effect from May 1.
The Chambers of Commerce of Ireland's CEO John Dunne said that while 65 cent an hour might not seem like a huge amount, when applied to 57,000 workers it would instantly add €45,000 an 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 €0.25m.
He also said that the increase bore no relation to the current inflation rate of 2.6%. He described the timing as extremely irresponsible and warned that it would cost jobs.
* ISME has also slammed the decision by Minister Tony Killeen to approve the increase in the minimum wage to €7.65 an hour from €7. ISME said it was 'another body blow for many small businesses in the battle to control wage costs, which have been increasing way beyond European levels'.
According to ISME's CEO Mark Fielding, the decision is devastating for many small companies who have already experienced a 30% average increase in business costs in the last three years.
