A group set up to examine the Living Wage says it should stay at €11.50 per hour this year.
The minimum wage is legally €9.15, but critics claim it is not enough to ensure a decent standard of life.
The Living Wage Technical Group thinks €11.50 is a fair hourly rate for 2016, which balances rising rents and reduced energy costs.
Labour Senator Ged Nash held the first ever Government Forum on a Living Wage.
He said that a recent study revealed that when employees are paid the appropriate wage their morale is higher and they are more likely to stay.
“Where a Living Wage is paid, it’s easier to retain quality staff, there are higher productivity rates and morale, of course, is improved as well,” he said.
“At the moment in Ireland we have the Living Wage Imitative, which is a voluntary one, but what we don’t have is the establishment of a Living Wage foundation – I think that’s needed to advocate and promote amongst employers the need for a Living Wage.”