Plans to increase the minimum wage by 50 cent an hour are "a balanced compromise", according to the Jobs Minister.

Richard Bruton was reacting to reports that the Low Pay Commission is due to recommend the increase, to be included as part of the next budget.

Trade unions say the increase does not go far enough, while employers groups say the new wage of €9.15 per hour will be too high.

The Irish Business and Employers group IBEC claims a proposed minimum wage increase will cripple companies.

A recent OECD report says Ireland has the fourth highest minimum wage in the world.

This puts us behind Australia, Luxembourg and Belgium in terms of hourly minimum wage - but above France, the Netherlands and New Zealand.

We also beat out many of our larger neighbours - including Germany, Canada the UK and the US.

Paul Treyvaud, who runs a restaurant in Killarney, says the Government is trying to "hoodwink" people:

IBEC says the move would put pressure on businesses that are already struggling.

Spokesperson Maeve McElewe told Newstalk Breakfast small enterprises cannot afford an increase right now.

Jimmy Kelly, Irish secretary with UNITE trade union, believes many people have been left behind in the recovery.