The Labour Court has recommended that the minimum wage should rise from €7.65 to €8.65 an hour in the New Year.
The increase would be implemented in two phases. The first increase would bring the minimum wage to €8.30 from January 1, 2007 and the second phase would bring the rate to €8.65 from July 1, 2007.
The most recent ESRI estimate stated that 5.2%, or 70,500, workers employed in private sector non-agricultural firms are earning the minimum wage. In 1999, 21% of such workers were on the minimum wage.
The recommendation has been sent to the Minister for Labour Affairs, Tony Killeen, for his consideration.
He said that under the National Minimum Wage legislation, he must now take into account the impact the proposed rate may have on employment, the overall economic conditions in the state and national competitiveness when considering the Labour Court's recommendation.
The minimum wage was first introduced in Ireland in 2000 at a rate of €5.59 an hour. Since then it has risen four times, most recently in May 2005 when it was set at €7.65 an hour.
The Irish Congress of Trade Unions had sought a new minimum wage rate of €9.03 an hour which would equate to 60% of average industrial earnings. Congress General Secretary David Begg said he regarded the increase to €8.65 an hour as reasonably fair, though he would have preferred it not to be phased.
