The minimum wage increase comes into effect from today, January 1st. The rate is rising by 80 cent to 13 euro and 50 cent an hour.
It means that someone working full time on the minimum wage will be 30 euro better off a week and 1600 euro a year.
Just under 200,000 workers across a wide range of sectors are set to get a mandatory pay increase today.
From today, a full-time worker receiving minimum wage will now earn an additional €30 a week or €1,600 across the year (that is before tax).
While workers across many sectors will be welcoming this increase today, groups representing the hospitality and small business sectors have warned that this is just the latest in a series of pay and tax related increases. And they are warning that costs could be passed on to consumers in the long run.
There is also dissatisfaction amongst Ireland's trade unions, with the Irish Congress of Trade Unions (ICTU) pointing out that even after this increase, the minimum wage is still worth less than 60% of average earnings – the benchmark in the campaign for the new national living wage to replace the minimum wage.
2025 will be the 25th anniversary of the introduction of the minimum wage.
"It was introduced in April 2000 and back then we heard what we are hearing this year - that a minimum wage will bankrupt the economy and cost jobs and businesses," said Dr Laura Bambrick, Social Policy Officer, Irish Congress of Trade Unions.
"It didn't happen then and it won't happen now," Dr Bambrick said.
The Department of Enterprise said the increase in the minimum wage should be considered as part of the overall package announced on budget day and in tandem with a range of measures introduced to support businesses.
