The National Minimum wage will increase to €10.10 in February, the Minister for Employment Affairs and Social Protection has announced.
That represents an increase of 30 cent on the current rate of €9.80 per hour.
It is estimated that over 127,000 workers would benefit from the increase.
Minister Regina Doherty said the Government had decided to increase the minimum wage due to the strong growth in earnings across the economy.
She said that the added clarity from the UK regarding Brexit was another factor in the decision.
The increase is in line with that recommended by the Low Pay Commission, the independent body tasked with examining the appropriate rate of the statutory minimum wage.
"With this most recent increase in the National Minimum Wage, an employee on minimum wage who works a full 39-hour week will now receive an additional €11.70 per week, or an extra €608.40 gross per year," Minister Doherty said.
"All types of work should pay well and it is my determination that a job should really lift people out of poverty. The ongoing increases in the minimum wage help to ensure that happens," she added.