SIPTU has called on the Government to introduce a "supplemental increase" in the minimum wage next year, as proposed changes to the minimum wage are "failing to keep up with inflation".

The national minimum wage of €10.50 an hour is set to increase to €11.30 on January 1.

However, according to the Living Wage Technical Group (LWTG), which was formed in 2014 and is supported by trade unions and charities, the hourly living wage for 2023 should be €13.85.

The LWTG, which determines the living wage based on changes in living costs and income taxes, said living costs have increased in almost all areas over the past year. It is estimated that one-in-five full-time workers is earning less than the living wage in Ireland.

Yesterday, Teresa Hannick, Siptu services division organiser, said hundreds of thousands of workers are "caught in a low-pay trap" and the 80c increase to the minimum wage is "failing to keep up with inflation" and "falling further behind the living wage".

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She said: "The Government should introduce a supplemental increase in the minimum wage next year."

She added that two trade union representatives on the Low Pay Commission, which included a representative from Siptu, said the minimum wage should increase by €1.50 an hour.

"This would ensure that the lowest paid workers in the economy are protected from inflation. It would also mean that the Government's goal of reaching the living wage by 2025 can be achieved," she said.

Yesterday, Lidl Ireland announced that it would commit to the 2023 living wage of €13.85 an hour which will increase the pay of 4,200 of its employees. This will cost the company €7.5million.

A full-time Lidl employee worker is expected to take home approximately €1,500 more per year under this announcement. The pay increase will come into effect on March 1, 2023.