Workers could face a tax hike to help pay for welfare benefits.

It is part of a proposal before the Government in order to boost the welfare budget for pensioners, which is coming under increasing pressure as the population ages.

Currently, Irish workers pay one of the lowest rates in the developed world according to documents from the Department of Social Protection.

According to the Irish Independent, a PRSI increase of 0.5% could run into the hundreds of euro for some.

Any changes to the current system would be contained within the upcoming budget.