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06 Sept 2025

Increased figure for Living Wage to match cost of living rises revealed

Terms of Reference for Low Pay Commission report into 'Living Wage' agreed but will it ever really happen?

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The updated Living Wage for the Republic of Ireland has been calculated by the Living Wage Technical Group at €14.80 per hour, to keep up with the rising cost of living.

The new rate represents an increase of 95c per hour over the 2022/23 rate (€13.85) ‐ an increase of 6.9%.

The living wage is calculated based on living costs and the increased rate is associated with increases in these costs.

The rate is calculated by the Living Wage Technical Group (LWTG) and is based on research undertaken by the Vincentian MESL Research Centre at St Vincent de Paul. 

Over the past year most living costs have increased, including for energy (+23%), food (+21%), personal care (+9.2%), housing (+7%) and social inclusion (+6.3%). These have outweighed lower costs in transport and education to drive the overall increase.

In principle, a living wage is intended to establish an hourly wage rate that should provide employees with sufficient income to achieve an agreed acceptable minimum standard of living. 

According to LWTG: "In that sense it is an income floor; representing a figure which allows employees afford the essentials of life. Earnings below the living wage suggest employees are forced to do without certain essentials so they can make ends-meet".

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