They claim the PUP is discouraging people from going back to work.
Business group ISME says the Pandemic Unemployment Payment is making it difficult for employers to find workers.
The Irish Small and Medium Enterprise Association says the PUP is acting as a "significant brake" on getting people back to work.
Later today, ISME will tell an Oireachtas Committee that employers are struggling to recruit workers for part-time, seasonal or casual employment.
They claim agriculture, hospitality and accommodation have been hit the hardest.
According to CEO of ISME, Neil McDonnell the belief people will return to work when work's available isn't true.
