A survey of Dublin businesses has found that around 90% of their employees are facing pay cuts or pay freezes this year.
The Dublin Chamber of Commerce said its members want to see the public sector follow suit.
The survey of 350 businesses in Dublin found that pay cuts will be up to 10%.
However, the higher paid will be taking the brunt with almost one-third of senior executives taking the highest reductions while junior staff will be more likely to have a pay freeze.
Gina Quin of the Dublin Chamber of Commerce said members saw pay cuts rather than job cuts as a better way of dealing with present difficulties.
She said the public sector should be taking similar measures.
The survey suggests that two-thirds of Dublin businesses still want social partnership but want the present deal renegotiated.
The findings were backed up by a similar survey in Cork that found half of all businesses there facing job losses.
Cork Chamber of Commerce also wants efficiencies in State employment.
5,000 redundancy notices a month
Earlier it emerged that 5,000 redundancy notifications are being received every month by the Department of Enterprise, Trade and Employment.
Seán Gorman, DETE Secretary General, told the Oireachtas Public Accounts Committee that because of the increase in redundancy applications the bad-debt level in the Social Insurance Fund will rise.
The PAC is looking into the efficiency of the Department to recover redundancy from employers in cases of liquidation, examinership or receivership.
When this happens, the Department pays employees directly and later pursues 40% of the amount from the employer.
Mr Gorman said there was €48m outstanding to the Department in this area.
In the Comptroller and Auditor General's report for 2007, John Buckley said there had been a threefold increase in debt in the Social Insurance Fund over five years and the Department had a backlog of debt recovery to complete.
