A living wage could be introduced by 2025 under plans being launched by the government today.
The low pay commission has formally started the work to replace the minimum wage with one based on the cost of living.
The Living Wage is being defined as the minimum income needed for a single, childless, full time worker to meet their basic needs and afford an acceptable standard of living.
It's been estimated to be 12 euro 30 cent an hour by the Living Wage Technical Group, a body which has advocated for the move since 2014.
The Low Pay Commission will examine what the state rate should be set at. It will also be asked to consider whether there should be a different, higher rate for those living in Dublin and whether age should play a factor in setting rates.