Latest: Restaurant owners criticise 20c increase in living wage

Update 9.05am: Restaurant owners are warning businesses should not be penalised because the cost of housing has gone up.

They are unhappy with recommendations that the living wage should be increased to keep up with rising costs.

The Living Wage Technical Group, which decides the level, thinks an extra 20 cent should be added bringing the hourly rate to €11.90.

CEO of the Restaurant Association of Ireland, Adrian Cummins, says it is far too high.

"Why would you penalise businesses right throughout Ireland and introduce a living wage that will, effectively, close down a lot of businesses that won't be able to afford it," he said.

We have always said let the free market dictate at the end of the day and whatever businesses can pay will pay.

Earlier: Housing crisis pushes living wage to €11.90 per hour

Update 7.33am: Irish workers should be paid at least €11.90 per hour to have a reasonable standard of living.

That's according to the body that decides Ireland's 'Living Wage', which has announced a 20 cent increase.

It compares to national minimum wage of €9.55.

The change has been made largely due to the ongoing housing crisis.

Bernadette McMahon says the group had to factor in not just living costs but also the cost to employers.

"We try and reflect a figure which actually reflects the cost of living," she said.

With employers in mind as well, we always go for the minimum increase.

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