The living wage has been recalculated upwards to €12.90.
The hourly rate has been increased from €12.30, to reflect a higher cost of living.
However, the national minimum wage currently stands at €10.20.
The Living Wage Technical Group - made up of economists and representatives from unions and social justice charities - says the main driver of the increase is the soaring cost of rent.
Assistant Professor of Social Policy at UCD, Dr Micheál Collins, explains how the living wage is calculated.
"We base the living wage on a basket of goods that are determined to provide a single individual working full time with a basic but reasonable standard of living.
"That includes a basic diet, it includes basic levels of clothing and basic levels of hair and health costs."
