There will be a cut to the Universal Social Charge in next week's budget

The Irish Independent reports there will also be a change to income tax bands as finance Minister Paschal Donohue negotiates a deal with Fianna Fail.

The USC cut will help the so called 'squeezed middle' earning up to 70 thousand euro a year, while the tax band tweak will benefit those on over 33 thousand 800.

But the overall increase in workers' pay slips is likely to be less than 20 euro a month.