Update 7.23pm: Trade union Unite has said that the new National Minimum Wage rate of €9.55 is still over €2 short of the Living Wage, calculated this year as €11.70 per hour.
Unite regional secretary Jimmy Kelly pointed out that today’s increase follows what he described as the ‘derisory’ increase of 10 cents last year.
"Unite has consistently argued that what is needed is a medium-term strategy to bring the Minimum Wage to the Living Wage," he said.
"In that context, today’s modest increase only slightly narrows the gap with the Living Wage of €11.70, which has been independently calculated as what is needed to provide a minimum acceptable standard of living.
"Poverty pay is endemic in Ireland: we have one of the highest incidences of low pay in the industrialised economies.
"Low pay is not only bad for workers and their communities – it is also bad for business, resulting in higher staff turnover with the associated costs, reduced productive and low staff morale.
"While today’s modest increase is welcome, it follows on last year’s derisory 10 cent increase and still leaves the Minimum Wage over €2 short of the Living Wage.
"What is needed in the medium term is not only a strategy to align the Minimum Wage with the Living Wage, but also a strategy to bring down costs such as rent, which in Dublin accounts for over 40 per cent of the Living Wage."
The minimum wage is to increase by 30 cent to €9.55 an hour.
The changes will come into place in January.
It works out as an increase of only €12 a week for those working full time.
The increase was one of the recommendations of the Low Pay Commission.