The one euro cut in the minimum wage - bringing it to €7.65 - will come into effect on February 1st, it has been announced.
Minister for Enterprise Batt O'Keeffe signed the order giving effect to the measure today. He said it would help to improve competitiveness and that the new rate would "remain in the top tier of minimum wage rates set by European Union member states".
It would also be about 12 per cent higher than the equivalent minimum hourly rate in the UK.
"Labour costs represent a relatively high proportion of total input costs across a range of locally trading sectors," Mr O'Keeffe said.
"They are a significant input into the cost of domestic services while at the same time impacting on our ability to sell abroad. They are a key influencer in foreign direct investment decisions."
Mr O'Keeffe added: "Our economic research tells us that a reduction in the national minimum wage will cut the cost of doing business and support more jobs in the medium term."
Central Statistics Office figures show that about 47,000 workers, or 3.1 per cent of the employed labour force, are paid at or below the current adult experienced worker rate of €8.65 per hour. "It is essential to strike the right balance between the minimum wage, labour legislation, social welfare rates, taxation and activation of the labour market to avoid disincentives to return to work," Mr O'Keeffe said.
Notices will be published in national newspapers before February 1st.