More than 150,000 workers could be laid off under changes to take effect to the wage subsidy scheme on Tuesday, Sinn Fein warned.
Under the new rules the maximum weekly subsidy per worker will fall from €410 to €203. Only employees earning above €151.50 and below €1,462 will be eligible.
Pearse Doherty said employers have already begun letting workers go as they struggle to “keep their head above water”.
The Sinn Fein finance spokesman told Newstalk’s On The Record: “There is a significant decrease for employers to continue to support their employees at this time.
“And crucially in terms of the lowest paid employees there is actually no support for them whatsoever.
"When we talk about how many people are affected, there’s 153,000 workers across the economy that earn below that figure – 61,000 of them are actually availing of the temporary wage subsidy scheme at this point in time so their employment is supported by the State and that ends on Tuesday.”
Meanwhile, Gerard Brady, chief economist with Ibec, said early indicators suggest the country is under a K-shaped recovery.
This would see some sectors recovering quickly while others continue to decline which could lead to deep inequality.
Mr Brady told the Sunday Business Post he thinks the Government will need to borrow a further €15billion in 2021 on top of this year’s figure of €30billion.
