Plans will be put before Government next week to cut back the Pandemic Unemployment Payment for part time workers.
According to the Sunday Times tens of thousands of workers would be moved to jobseekers instead.
A report by the Department of Business found that 38% of those on the payment were earning more than if they were working.
Labour has accused Fine Gael of falling back to a "conservative hard man playbook" and "welfare bashing."
TD Ged Nash says it's unfair to cut payment when some people can't actually go back working yet:
"Cutting the basic income of thousands of workers when large parts of the economy are shut, with no alternative for them to go back to work would be wrong."
Don't Refuse Your Old Job Back - Varadkar
On Thursday the business group IBEC said employers may be finding it harder to fill vacancies because of the payment.
The Taoiseach Leo Varadkar on the same day said anyone who refuses their old job back will lose access to the payment.
If you are returning to work this week and are currently receiving the COVID-19 Pandemic Unemployment Payment, you must stop this payment on your first day back at work.
The simplest way to do this is online at… https://t.co/A49xPDX9IN— Dublin South MABS (@DublinSouthMabs) May 20, 2020
Payment Cut "Not Fair" On The Worst Off
Meanwhile People Before Profit TD Richard Boyd Barrett says it's not fair on the least well off.
"They want to put the knife into workers who have suffered hardship and made great effort by staying at home to protect public health."
Meanwhile he also has demanded that Ministers take home less than the €350 to see how they manage:
After all the talk of #InItTogether the @FineGael @fiannafailparty mask is slipping-they want to put the knife into workers who lost jobs & income because of #COVIDー19 by cutting €350 payment. Let their Ministers & TD’s work for less than €350, see how they get on @pb4p
— Richard Boyd Barrett (@RBoydBarrett) May 24, 2020