The government's announced the introduction of a National Living Wage.
Tanaiste Leo Varadkar says it will be set at 60 per cent of hourly median wages.
He says it is in line with the recommendations of the Low Pay Commission and introduced over a four year period.
It'll replace the National Minimum Wage in 2026, which until then will be increased gradually, starting in January.
Tanaiste Leo Varadkar's acknowledged the concern of businesses over the potential cost
However, he insists the plan can be amended if there is a change in the fortunes of the economy.
"As you know, in good times and bad, businesses close.
"Some succeed, some don't and it's always a very sorrowful thing when businesses doesn't succeed.
"In Ireland, we have more people at work than we have before.
"We haven't seen any fall off of total employment and we haven't seen any rise in unemployment yet.
"But as I said earlier, the flexibility is there for the Low Pay Commission to slow down the phasing in on the living wage."