The Irish Congress of Trade Unions want to see a "very significant increase" in pay for all workers in the private and public sector to make up for the deficit last year.
Speaking on RTÉ's This Week, ICTU President Kevin Callinan said the "ball is in the Government's court" as to how they want to structure this in terms of spending this year and next year.
"And to see what extent they are prepared to prioritise low wage earners and middle income earners," he added.
Mr Callinan said across the economy, in both private and public sectors, many people on low and middle income are struggling.
Public sector pay talks between the Government and unions are to intensify and move to a formal phase this coming week.
He said the way they are looking at the upcoming talks as a review of the terms.
"What we are really saying is that if we had known then what we know now in terms of inflation, the performance of the public finances which have improved immeasurably, then we would have been doing a different type of pay deal for the two years involved."
He said the Minister has indicated he wants to look at pay for next year also, with Mr Callinan adding that ICTU "are open to that."
He said the problem faced by Ireland is the low value of social wage means that all of the "heavy lifting falls to pay bargaining".
"The reality is that both in private and public sector we are going to have to try protect members' living standards and the way we do that is by wage bargaining."
He said there needs to be a focus also on the medium to long-term solution and look at options such as a publicly delivered form of childcare.
That would allow people to have the aspiration to live near where they grew up, he said.
Mr Callinan also said services need to be improved and financial supports provided to people generally.
