According to a new statistic from the Living Wage Technical Group (LWTG), the living wage in Ireland has risen 4.9% and now stands at €12.90.

Calculated based on research from the Vincentian Partnership for Social Justice, living wage reveals the average salary that a full-time employee would ned to afford an appropriate standard of living.

As reported by Irish Examiner, while last year's rate was €12.30, living wage has been affected by the rise in rent prices and energy costs. The cost of rent is the factor that constitutes 3.9% of the 4.9% increase. The other 1% is made up of the increase in cost of energy for both home heating and transportation.

Though costs for food, clothing, car insurance, and more experienced a decrease, still about one in five workers earn less than the living wage.

"The living wage rate is based on the rationale that full-time employment will at least provide for a socially acceptable minimum standard of living for a single person without dependents," explained Robert Thornton, member of LWTG and senior research and policy officer of Vincentian Partnership for Social Justice. "It represents the minimum required to meet physical, social, and psychological needs, and enable a life with dignity. Having an income below this standard of living means doing without goods and services which are essential for taking part in the norms of everyday life."

Last week, Tánaiste Leo Varadkar said he hoped to phase in the living wage in 2022 or 2023, saying: "As we see the return to inflation and a rise in the cost of living, we need to protect people's standard of living – pay increases, tax reform, work and pension increases."