The national minimum wage will rise to €9.15 per hour from Friday, January 1st, 2016 following a recommendation from the Low Pay Commission.

Minister for Business and Employment Ged Nash welcomed the rise, saying workers, particularly women and young people, would see a direct increase in their pay packets from the start of 2016. He added that about 124,000 workers would benefit from the 50 cent increase.

A single person on the minimum wage working 39 hours per week will be better off by €708 per year or €14 per week as a result of the increase, according to the Labour minister.

“It is a core belief of mine that work should always pay, and I am very glad to be delivering a much needed pay increase to those who earn least in society,” said Mr Nash. “While the increases are modest, I am determined to see everyone, not just the better off, sharing in our economic prosperity.”

He said the rise would mark the second increase to the minimum wage introduced by the Government since it came into office in 2011. He added that the Government had already reversed a €1 per hour cut to the minimum wage introduced by the Fianna Fáil/Green administration.

The commission is due to review the minimum wage rate again next year.

Tánaiste Joan Burton announced in early December that the Labour Party would commit to increasing the minimum wage by 50 cent every year if re-elected to government. She said the junior Coalition party’s manifesto would seek a €2 increase to be phased in over four years.

“If we’re going to have a prosperous and thriving Ireland we need people to have a decent level of wages and decent jobs with good terms and conditions,” she said. “ Because, if we’re going to have a knowledge economy, we’re aiming to ensure that everyone who wants a job is back at work. We’re working very strongly towards that.”

The Labour proposals would see minimum wage raise to €9.65 in 2017, €10.15 in 2018, €10.65 in 2019 and €11.15 in 2020.

Mr Nash has asked the Low Pay Commission to investigate why the vast majority of those paid the national minimum wage are women. He has also asked the commission to examine the impact of the lower “sub-minima” rates payable to young people on levels of youth unemployment and on participation in education.