Fianna Fáil is accusing the Labour Party of capitulating to Fine Gael demands by not increasing tax on those with high incomes.
The party's finance spokesperson Michael McGrath described the government's decision to abolish the PRSI exemption threshold as a 'highly regressive move' and an increase on income tax through the back door.
"In what can only be described as a highly regressive move, you have abolished the PRSI exemption threshold in a move that will cost every worker in this state earning anything above the minimum wage €264 per annum.
"This will be seen for what it is - an increase in income tax through the back door."