Minimum wage to rise to €7.65 from May 1

The national minimum wage will rise by 9 per cent to €7.65 per hour next month, it has been announced.

Labour Affairs Minister Tony Killeen announced the rise of 65 cent, up from the current seven euro hourly minimum, will appear in workers' pay packets from May 1 ^st.

Mr Killeen said he was giving the increase Government backing after accepting the recommendation of the Labour Court.

"This increase will benefit low paid workers in our society. In particular, it will be of benefit to part-time workers and younger workers," he said.

"The rate of increase in the minimum wage, since it was introduced in 2000, had fallen behind increases in average earnings up to 2003.

"The most recent increase in February 2004 and the further increase in May 2005 brings them back into line."

The sub-minimum rates which may be paid to certain categories of employee, including those under the age of 18, first time job entrants, or those engaged in structured training or study will also increase from this date, he said.

The minister said there will be a publicity campaign to raise awareness of the increase.

The Chambers of Commerce of Ireland claimed the increase in the minimum wage would cost Irish businesses up to €250,000 per hour and would result in job losses.

CCI chief executive John Dunne said: "Sixty five cent per hour may not seem like a huge amount but with 57,000 people on the minimum wage this increase will instantly add €45,000 per hour onto the payroll of Irish business.

"This takes no account for the knock-on effect that the increase it will have on other wage levels which we estimate will cost business an extra quarter of a million euro per hour as low paid workers not on the minimum wage seek to protect their relative wage status."

Mr Dunne said the increase bears no relation to the current inflation rate of 2.6 per cent and that the timing was "extremely irresponsible".