Lidl, which has 143 stores around the country, will become the first big employer in Ireland to commit to paying the Living Wage of €11.50 an hour.
The discount retailer said the move will benefit the 20% of its staff currently earning below this rate as all its other staff already earn more than €11.50 an hour.
About 700 of the company's 3,800 staff will benefit from the move.
The Living Wage is an independently assessed and measured rate of income considered necessary to have a socially acceptable standard of living. The new rate is 30% higher than the current minimum wage of €8.65.
'Hon the lads. Let's hope more employers follow their example.