Two Ministry of Social Development staff members have been stood down after video emerged on social media of alleged racist abuse by a WINZ worker towards a bouncer in Taupo.

The video was taken by the bouncer outside Finn MacCuhal's Irish Pub and obtained by ONE News, and shows a man and woman arguing with security after they were refused entry for being intoxicated.

The pair took issue with the bouncer's decision, with the man saying it was based on race.

"(It's because) we're white, that's the problem, we're white, that's the problem," he says.

After further discussion, his remarks take on a more pointed edge.

"Racist.... racist shit. F****** n*****s, that's racist shit. That's what it is, racist shit. That's what it is."

The Ministry of Social Development says it has launched a full investigation following a verbal confrontation in Taupo between Work and Income employees and bar staff.

"Work and Income will not tolerate poor behaviour or racist language, and we are taking this matter very seriously," a ministry spokesperson says in a statement.

"We have already met with a number of parties, including the bar staff."

Two staff members have been stood down while the investigation continues, the spokesperson says.

"In the interests of a fair process, this investigation needs to be completed before we can comment further."