Ed Miliband says a Labour government would set a statutory minimum wage target linked to average earnings, as he sets out plans to tackle low pay.
The party will announce an exact figure - covering the years 2015 to 2020 - nearer the general election.
Mr Miliband told the BBC it was a "scandal" that five million people in work were "unable to make ends meet".
Both the Conservatives and Liberal Democrats have already said they want a rise in the minimum wage.
However any major increase is likely to be criticised by business groups worried that it would drive up costs and damage competitiveness.
The Labour leader is due to unveil a report by Alan Buckle, the former deputy chairman of KPMG International, which details proposals to overhaul the Low Pay Commission.
Mr Miliband is pledging to increase the national minimum wage so it gets closer to average hourly earnings.
Labour will not say what the final level for the minimum wage would be, but a source said it would be a "stretching target".
'Hard day's work'In a speech following the launch of the report, Mr Milliband is expected to tell party activists in the West Midlands: "Britain is still one of the lowest-paid countries among the world's advanced economies.
"So we have to go further. We have to write the next chapter in the history of Labour's battle to make work pay.
"That's why, today, I am proud to announce that the next Labour government will take new radical action against low pay: a new five-year ambition to restore the link between doing a hard day's work and building a decent life for your family.
"A Labour government will establish a clear link between the level of the minimum wage and the scale of wages paid to other workers in our economy."
Mr Miliband told BBC Radio 4's Today programme: "This gets at what is a terrible scandal in this country, which is that we have still five million people in paid work unable to make ends meet...
"We've got to go further in tackling the problem of low pay."
Mr Miliband said he wanted the minimum wage to rise in proportion to average earnings during the next parliament.
He emphasised that he was setting out a "framework" rather than an exact figure, and that Labour would consult businesses.
Liberal Democrat Business Secretary Vince Cable has also proposed setting a long-term target and Chancellor George Osborne has called for the minimum wage to rise to £7 an hour.
The minimum wage will increase by 19p an hour to £6.50 from October.
Mr Miliband said the European Parliament election this week was "very unpredictable" and that the recent increase in support for the UK Independence Party was was due to "discontent with the system".
It was up to Labour to show voters that the country "can be better" in the run-up to next year's general election, he added.
BBC political editor Nick Robinson said that if, after four years of austerity, Mr Miliband did not win what is a national election, he would "have some questions to answer".
Are you working on minimum wage or run a business employing people on minimum wage? How would the proposed changes affect you? You can email your experiences to haveyoursay@bbc.co.uk, using the subject line 'Minimum wage'.
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