McDONALD's Irish operation has announced an increase in the hourly rate for full-time workers to £4, from £3.92, with effect from 1 August. Part-time and trainee workers will be paid £3.60.
The £4 full-time rate will apply after a 12-month training period. However, 70% of staff are part-time workers.
McDonald's plans to almost double its chain in the Republic to 75 branches, by opening 36 more restaurants by 2000.
The chain will increase wages in small increments ahead of a £4.40 national minimum wage, also due in 2000.
Country manager Andy Corcoran said the minimum wage will not affect the wage bill of the chain, which by then will have 5,000 employees.
Turnover last year was £60.3m and sales increased by 9% in the existing restaurants. Thirty-one of the 39 McDonald's restaurants in the Republic are franchise operations.