It'll benefit 122,000 workers.
An increase in the minimum wage has been approved by the Government, meaning it'll increase by 10 cents to 10 euro 20 cents from the 1st of January.
Social Protection Minister Heather Humphreys brought the proposal to Cabinet on Tuesday, based on recommendations from the Low Pay Commission.
She said: "Since 2016, the national minimum wage has increased from €8.65 per hour to its current rate of €10.10.
"Today, Government approved a further increase to €10.20 which will come into effect on 1st January 2021. This will benefit 122,000 low-paid workers.
"I also want to ensure that the increase in the minimum wage does not result in employers having to pay a higher level of PRSI charge solely due to this increase.
"I will make regulations that will increase the employer PRSI threshold from €395 currently to €398 from 1st January 2021."
Last month the Irish Congress of Trade Unions withdrew from the Low Pay Commission in a row over the level of increase recommended by the body.
