THE MINIMUM WAGE is set to increase by €1.40 per hour, the Government has announced.

Finance Minister Michael McGrath revealed in his Budget 2024 speech this afternoon that the wage will rise by 12% to €12.70 per hour.

The minister said that the increase would ensure that lower-paid workers remain outside higher rates of the Universal Social charge.

The proposed increase will be introduced on 1 January 2024, alongside changes to PRSI and USC.

The current minimum wage is €11.30 per hour and last increased by 80c in 2022.

The latest increase is in line with a recommendation with the Low Pay Commission, which recommended a €1.40 rise in July.

The Irish Small and Medium Enterprise Association (ISME) warned at the time that the increase would add to the strain on businesses, including as a result of other government initiatives.

However, the rise is still less than the recommended €14.80 National Living Wage, which is promoted by campaigners who say that it is the amount required to enable Ireland’s lowest-paid workers to have a minimum acceptable standard of living.

You can find full details of today’s Budget announcement in our roundup here.