The figure was calculated by the Living Wage Technical Group, which includes the trade union-backed Nevin Economic Research Institute, the TASC think tank, Social Justice Ireland and the Vincentian Partnership.

The living wage figure is a calculation of what’s needed for an individual to cover the cost of food, clothes, housing, health, education, transport and recreation. The group intends to update the living wage rate on an annual basis. 

IMPACT general secretary Shay Cody said the living wage was an important reference point for trade unions, policymakers and the business community. “The calculation of a living wage reveals what it costs for a person to live with dignity. But it also it tells us what it takes to generate the kind of economic growth the country needs. Any sector that relies on driving wages down is denying this opportunity to workers and strangling growth at the same time. This will be a factor in union wage campaigns in the private, public and community sectors over the coming years,” he said.

TASC director Nat O’Connor said promoting a living wage was necessary to tackle economic inequality in Ireland. “Full-time employment is an important response to economic inequality, but there is a growing split in Ireland between those with good jobs and those in insecure, part-time or low paid employment. Part-time or low paid work can perpetuate inequality,” he said.

Living wage calculations have been embraced by business and politicians across the spectrum in other jurisdictions including London. “They provide an evidence-based calculation of the cost of living and public bodies and companies have pledged to be living wage employers. I hope similar support for the concept of a living wage can be generated in Ireland too," said O’Connor.

SIPTU economist Marie Sherlock said the living wage calculation represented an important starting point in the battle to improve living standards. “It follows on from efforts made in the UK, the US and elsewhere to calculate a minimum acceptable standard of living for workers. And it casts a sharp light on the significant gap between wage rates prevailing in certain low paid sectors of the Irish economy and the national minimum wage,” she said.

TASC policy analyst Cormac Staunton said the gap between the living wage and the statutory minimum left many people struggling to get by.  “Paying people a living wage would allow them to increase spending on day-to-day items, which will also be good for business and employment,” he said.

A dedicated website has been established - www.livingwage.ie - which includes a technical document detailing how the Living wage has been calculated.