Labour's call for the minimum wage to be linked to the national average forms the "core proposal" of a report Ed Miliband commissioned from former deputy chairman of KPMG International Alan Buckle.
Mr Buckle's proposals to overhaul the Low Pay Commission include a new five-year target and a strengthened role in tackling poverty and raising productivity.
He said the goal to increase the minimum wage over the life of a parliament was achievable.
The GMB union said Labour's commitment to review the role of the Low Pay Commission was "welcome and necessary", while the TUC said: "Unions have long argued that many employers can easily pay more than the legal minimum."
"Alan Buckle's report shows that fair pay goes hand in hand with running a successful economy," TUC general secretary Frances O'Grady said.
More top news
British firms predict the economy should sustain a "solid" pace of growth for the rest of the year thanks to lower oil prices and inflation.
A charity has warned of a "pressure cooker environment" in schools putting children's mental health and self-esteem in danger.
The twin brother of the police officer shot and blinded by gunman Raoul Moat says his family are still waiting for justice five years later.