The National Minimum Wage is set to increase by 80-cent from €10.50 per hour to €11.30 per hour under plans expected to be approved by Cabinet today.

It is expected that this increase will be effective from 1st January 2023 along with changes to PRSI and USC.

An Tánaiste Leo Varadkar stated that the rate needed to be increased to help lower paid workers manage the increasing cost of living.

Varadkar has also said that the Minimum Wage will be phased out and replaced by the Living Wage and that the intention in Government is to phase in the Living Wage between now and 2026.

Varadkar will be returning to Cabinet to sign off on the full Living Wage plan next month, though the planned phase-in could change over the coming years, depending on inflation and wage growth.

The current Living Wage is €12.17 per hour, and it is expected that this will increase to €13.10 next year.