A group set up to examine the living wage says it should stay at €11.50 per hour this year.

The minimum wage is legally €9.15, but critics claim it is not enough to ensure a decent standard of life.

The Living Wage Technical Group wants to see employers voluntarily offer staff a better starting salary.

It thinks €11.50 is a fair hourly rate for 2016, which balances rising rents and reduced energy costs.

Several firms have already increased pay levels, including the grocery chain Lidl.

Dr Nat O’Connor, a member of the Living Wage Technical Group, said: “This is the third year that we have put forward a living wage and it is based on detailed calculations of budget standards.

“So it really goes into detail down to grocery bills, energy costs – everything is tracked.

“Everything is available on the website livingwage.ie, so people can see where the numbers are coming from.”