Report advises Irish government to increase minimum wage - source

By Padraic Halpin

DUBLIN, July 18 (Reuters) - The body set up to advise Ireland (Other OTC: IRLD - news) 's government on the rate of the national minimum wage has recommended it be increased to 9.15 euros ($9.9) per hour from 8.65 euros, a government source said on Saturday (Shenzhen: 002291.SZ - news) .

The government last increased the minimum wage in 2011, reversing a 1 euro cut agreed by the previous administration under the terms of an international bailout, and established the Low Pay Commission to advise on further changes.

The recommendation by the commission, whose members include business groups and trade unions, would represent a 5.8 percent rise and would mean an annual increase of 1,000 euros for workers on the minimum wage.

The hike would kick in next year, in the run-up to parliamentary elections.

The government, which can reject the commission's advice, has said it has up to 1.5 billion euros in its budget next year to cut taxes and increase spending and ministers have called for a rise in the minimum wage to form part of that package.

Prime Minister Enda Kenny said on Thursday the government will respond to the commission's recommendation with a package of measures in October's budget to protect jobs.

Conscious that Ireland's recovery is only beginning to trickle down to small businesses, many of whom were left with large debts when the economy collapsed, Kenny has said the government would look at measures to mitigate the impact any change could have on small employers.

Minister for Business and Employment Ged Nash has received the commission's report and expects to bring it to cabinet next week, a spokeswoman for the minister said. ($1 = 0.9236 euros) (Editing by Alex Smith and David Holmes)