Following the recommendation by the Low Pay Commission that the minimum wage be increased from €9.15 to €9.25 per hour, employers’ body Ibec has said any increase “is not justifiable in the current economic environment”, and would intensify cost pressures on business.

The 10 cent increase is favoured by a majority vote of the LPC. The NMW was last increased on 1 January 2016, with a 50c per hour increase from €8.65.

Jobs minister Mary Mitchell O’Connor (pictured) said: “I brought the commission’s report and recommendation to government earlier today, and it will be considered in detail in the context of Budget 2017.”

Maeve McElwee of Ibec commented: "While the proposed increase is broadly in line with wage trends elsewhere in the economy, many businesses simply cannot afford pay rises. Exporting companies most exposed to the sterling fall, in areas such as tourism, retail, manufacturing and food processing, are least able to absorb wage increases. Irish exporters are now facing a further blow to their ability to compete and win business in the UK. It will have a direct impact on their ability to create and sustain jobs.

"The minimum wage is 6% higher here than in the UK. With the exchange rate likely to move towards £0.90 over the coming months, this will make it 14% higher. Given current inflation forecasts, by January the Irish national minimum wage will have seen a 26% real increase in value since its introduction. An increase is not justifiable in the current economic environment and would only intensify cost pressures on businesses."

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The Anti-Austerity Alliance described the 10 cent increase as a ‘slap in the face’ for low paid workers. AAA TD Mick Barry said that the increase amounted to the government sanctioning poverty pay, despite their post-election rhetoric, and he called for an immediate increase to €12 as a step to a phased in minimum wage of €14.

“This measly increase of 10 cent an hour is disgusting and shows how out of touch the government are with the lives of low paid workers. “This is the reality of leprechaun economics – huge pots of gold for the multinational tax evaders with tiny pay increases for the ‘little people’.”

Retail lobby group REI described the proposed increase as "realistic".

Presuming the LWC recommendation is accepted by government, it will take effect in January 2017. It will amount to an annual pay increase of around €200 for the estimated 70,000 people paid the NMW.