70,000 low-paid workers are set to get a pay rise next year.
It has been confirmed that the National Minimum Wage will be increased by 50c, with the increase expected to kick-in in January.
The move has been announced by the Government after the report of the Low Pay Commission was released.
Some trade unions have claimed a 50-cent increase will actually bring more workers into the tax net - but Taoiseach Enda Kenny says the tax and welfare system will also be changed.
"All three elements of the plan to make work pay have to reinforce each other, and that is why the Government's response to the recommendations to the Low Pay Commission will be announced on the budget in October, alongside changes to the taxation system and the welfare system," said the Taoiseach.