Minimum wage to increase to €8.65 an hour next year

The Government has approved the Labour Court's recommendations for a €1 increase in the minimum wage next year.

Minister for Labour Affairs Tony Killeen confirmed today that the recommendation for a two-phase increase in the first half of the year would be implemented.

The decision will see the minimum wage rise from €7.65 an hour to €8.30 an hour on January 1 and to €8.65 an hour on July 1.

The news will be a welcome Christmas present for the low-paid, but will disappoint business representative groups, particularly those representing smaller firms.

These groups had claimed that the Labour Court proposals would push up costs and erode Ireland's competitiveness.