Tens of thousands of teachers, nurses and civil servants could be in line for pay rises.
Those who entered the public service since January 2011 are on lower rates of pay than colleagues in place before then.
The Irish Times reports that Government officials and unions are to meet on Friday to discuss ending the two-tier system.
It could see workers get an extra €3,300, but would cost the Government around €200m. The main issue to be determined would be whether it would be sorted in one go next year, or phased in over a period of time.