The auto enrollment scheme will also begin from New Year's Day.
The new national minimum wagecomes into effect on New Year's Day.
The increase is payable to most workers over the age of 20, bringing them to an average income of over €28,000 a year.
It coincides with the Governments auto enrollment pension scheme, which also takes effect on the 1st of January.
Personal Finance Editor with the Irish Independent Charlie Weston, says the increase is worth 65 cent an hour.
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