The Tánaiste says he foresees a bump in people's pay once the living wage is introduced.
The national minimum wage will be phased out in the process, and replaced by 2026.
The proposal to introduce a 'Living Wage' is based on recommendations and research gathered by the Low Pay Commission.
Leo Varadkar says it will certainly be an increase on where we are at the moment:
"If this proposal is accepted, and if government signs off on it in September, what will happen is the Low Pay Commission will issue a recommendation for a national minimum wage and also a national living wage next year. So, I anticipate a significant increase on where we are at the moment which is €10.50 an hour."