100, 000 Scots will get a pay rise if Labour win next year's UK general election.
The party says the minimum legal wage will rise to £8 an hour by 2020 at the latest.
Before that, any firm paying the living wage of £7.65 would get a rebate of up to £1, 000 per worker.
Shadow Scottish Secretary Margarent Curran said Labour "will make work pay."
She said: "People who go out and work hard deserve a decent income. That’s why we created the minimum wage, and that’s why the next Labour Government will strengthen it, giving a pay rise to 100,000 low paid Scots. And we’ll go even further by offering an incentive to firms that sign up to pay their staff the living wage.
“Since the financial crisis, working people have been hit the hardest and the recovery is only working for the few at the top. Labour will make sure that those with broadest shoulders pay their fair share and working people are rewarded for hard work.
“Under David Cameron, people across Scotland have got worse off, and the SNP have no answers about what they will do to help hard working people across Scotland. Only Labour will make Scots better off.”
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