The continued rise in inflation has caused the cost of living in Ireland to skyrocket, leaving many Irish workers struggling to make ends meet.
However, Labour Party Leader Ivana Bacik has said that her party has called upon the government to say Ireland needs a pay rise.
Speaking on Newstalk's Breakfast, she said the Labour Party agrees with the trade unions that workers must get pay increases that match inflation.
With negotiations already underway in the private sector and due to begin this week in the public sector, unions are pushing for wage increases that keep pace with the recent surge in inflation.
Ms Bacik said: "Well, the key thing is, that we should see a start in pay negotiations in both public and private sectors, and we've been calling for some time now on government to say that Ireland does need a pay rise.
"What we're saying, therefore, is that we need to see negotiated pay increases so that people's income can be sufficient to meet the rise of costs of living.
"We are conscious that inflation is at a 22-year high and rising, but for many people, the incomes that were adequate recently, maybe even a year ago, are no longer sufficient to meet the cost of living. I mean, I meet people every day in my own constituency for whom that's the case."
Ms Bacik also said an increase in the minimum wage is also needed.
She said: "We're saying it's not just about negotiated pay increases. It's also about raising the minimum wage, and we in Labour introduced a bill in the Dail last week to change, transform the minimum wage into a living wage. so to provide a mechanism where you would see a better set of criteria, we believe a more effective set of criteria, to change the low pay commission so that it would become a commission to determine what living wage suits people and that's a better measure."
Asked if she believes the rate of pay should be increased to match the rate of inflation of 7 per cent Ms Bacik said: "Well, it needs to be negotiated. We're conscious that many employers are already paying more than they were a year ago because there are also problems with staff retention and recruitment.
"I talk to employers in hospitality in home care and child care who tell me that they have real difficulty both recruiting and retaining staff.
"The reality is that negotiated pay increases are already underway, so it will depend on different sectors."
Get breaking news to your inbox by signing up to our newsletter.
