The national minimum wage will rise by 65 cents to €8.30 an hour from January 1st, it was confirmed today.
From July 1 stthe rate will rise by another 35 cents to €8.65, according to Minister of State with responsibility for Labour Affairs Tony Killeen.
The new wage structure follows the recommendations of the Labour Court which last month proposed this level and method of increasing the national minimum wage.
Wages below this rate, which may be paid to certain employees - such as those under 18 - are also being increased on a pro-rata basis.
Mr Killeen said he was pleased the target as set out in Towards 2016 had been reached and said the implementation would be discussed with the social partners. It has been 20 months since the minimum wage was last increased.
Employers had criticised the Labour Court proposals. Business lobby Ibec said it would increase the cost of goods and services.
Responding to the Minister's announcement today, Chambers Ireland said the "extremely narrow timeframe" until implementation date of 1st of would "cause significant difficulties for employers".
In a statement the organisation also expressed disappointment that the second increase was not pushed out to January 2008 but has welcomed the Minister's stated intention to discuss the adjustment process with the Social Partners.
Labour Party spokesperson on enterprise, trade and employment, Ruairi Quinn said the Government must ensure the minimum wage is enforced.
"The €1 increase in the minimum wage is, of course, welcome. However, the Government's failure to ensure that it is policed will mean that many unscrupulous employers will simply ignore it and pay rock bottom rates to their workers," he said.
