The Government is set to scrap minimum wage in the country and introduce a living wage by 2026.
Tanaiste Leo Varadkar announced this afternoon that the plans would see the living wage set at 60% of the median wage in any given year with the minimum wage rising each year until it catches up with the living wage.
The living wage in Ireland currently stands at €12.17 - an increase of almost €2 on the minimum wage of €10.50.
Under the new plan, the minimum wage would be scrapped and the living wage would be the lowest possible wage that can be paid to workers in Ireland.
Leo Varadkar last year sought report from the Low Pay Commission. He revealed today that the public consultation will get underway with final decisions being made in September before changes are made to the scheme in January 2023.
The public consultation will last six weeks once it commences.
The Tanaiste said at today's press briefing: "It's crucial that we make sure work pays. Whether you get up in the morning or work late at night, if you're going to do 38 to 40 hours work a week, we should make sure that you have enough to live on.
"In many ways, that's what the living wage is all about, making sure that we eliminate poverty for people who are at work, and also that we make sure work pays."
He added: "The gap between the average person and the person on minimum wage has has widened over the course of the past 30 years. The proposal we're making today will fix that.
"If we went to high or too fast, we could see people losing their jobs or businesses closing. You could see people having their hours cut. That would be totally perverse. These are the kind of things we have to take into account. I think the Low Pay Commission has done that in their recommendation.
"This is a proposal made by the Low Pay Commission unanimously; employers, unions reps, independent experts, backed up by research from Maynooth University."
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