An estimated 195,000 workers are expected to benefit from an 80 cent increase in the national minimum wage when it comes into effect tomorrow (1 January).

The minimum wage will rise 6.3% from €12.70 to €13.50 for workers aged 20 and above.

Similarly, the minimum wage will increase to €12.15 for workers aged 19, €10.80 for workers aged 18, and €9.45 for under-18s.

Research from the Economic and Social Research Institute (ESRI) published in 2023 found that minimum wage workers are often in lower quality and more insecure employment.

The research, which was funded by the Low Pay Commission, showed that minimum wage employees are 10 percentage points more likely than higher earners to fear job loss and to hold temporary employment contracts.

They are also five percentage points more likely to want to work more hours than they currently do, but 20 points less likely to be members of a trade union and have less access to flexible work options such as working from home.

Minimum wage staffers also more likely to work longer shifts of more than 10 hours that coincide with more unsocial times such as weekends, and 13 points more likely to work in jobs in which their skills are not fully utilised.

They also report lower job complexity and lower levels of computer usage compared to higher paid employees, and are less likely to receive training in their jobs.

At present, an adult earning the full national minimum wage working 35 hours per week would receive receives €444.50 per week before tax, presuming they are paid for all those hours.

Following the change such workers will make €472.50 per week before tax, an increase of €28.

In August, the Low Pay Commission recommended increasing the minimum wage to €13.70, a moved opposed by ISME on the grounds that Ireland already has the second-highest minimum wage in Europe at Luxembourg.

"With inflation currently running at just 2.2%, there is no justification whatsoever for a minimum wage increase almost four times that rate," ISME said.

"ISME and many other trade associations have advised government that any increase in the minimum wage, if there is to be one at all, should not exceed the rate of inflation."

The organisation warned of the potential for business closures and job losses if they minimum wage were to be raised to €13.70 without additional government support for firms.

(Pic: Getty Images)