The Government says a balance has to be found before the minimum wage can be increased.
The Labour Party has put forward a bill calling for a boost to low paid workers as they deal with the cost of living crisis.
The party is looking to bring the minimum wage of 10 euro 50 cent in line with the living wage of 12 euro 90 an hour.
But Junior Trade and Employment Minister Robert Troy says other considerations have to be taken into account first:
"We need to make sure we proceed in a way that does not cause jobs to be lost in terms of the number of people employed or employees having their hours cut or being forced into precarious employment. To do so would be counter-productive. We also need to recognize the fact that many businesses are still feeling the effects of the pandemic and are also starting to feel the pressure of rising costs."