The plans, which were outlined by Secretary of State Peter Hain this morning, would see the number of days of paid leave which some workers' are entitled to increasing from 20 to 30 days.

And for the first time, both St Patrick's Day and July 12 would be officially recognised as Bank Holidays.

A spokesman from the Department for Employment and Learning said: " Those two days were always obscured as to what legal basis there was for them. But now they are being included officially."

The move will protect vulnerable workers, with the lowest paid - women, part-timers and those from minority ethnic communities - gaining the most.

It would also allow reputable companies to compete on a more level playing field with those companies that give employees only the minimum of holiday entitlement.

Some employers currently include the ten bank holidays as part of their workers' 20-day annual leave entitlement.

Mr Hain said: "The minimum statutory annual leave entitlement would be increased in two stages, rising from 20 to 24 days on October 1, 2007, and from 24 to 30 days on October 1, 2008.

"Most companies already recognise that good holiday provision makes good business sense.

"Holiday entitlement can be a key factor in recruiting and retaining staff. Holidays are also important for productivity as they help minimise sick leave and keep people motivated and refreshed.

"People work hard and they deserve a decent break. We want to make sure everyone gets the holiday they are entitled to. Many people, particularly the lowest paid, have to take bank and public holidays from their leave entitlement and the increase will be a significant boost for these workers."

An increase would move local workers' annual leave entitlement closer to that of workers in other European countries, where holiday allowance is typically more generous.

Compared with the current minimum allowance of 20 days in Northern Ireland, for example, workers in the Republic are entitled to 29 days. The highest minimum entitlement is in Austria at 38 days.