Nearly a third households at risk of poverty are headed by a person with a job, according to the Conference of Religious in Ireland (Cori).
The organisation said the Government's failure to address the issue was a serious indictment of how the resources were used during the Celtic Tiger years.
In its annual socio-economic review, the policy watchdog challenged politicians and policy makers to tackle poverty, especially among the working poor.
After a period of great national prosperity, it is clear that many have benefited little from the boom times Fr Sean Healy, director of Cori Justice
The 233-page review, entitled Planning for Progress and Fairness, argued that, despite the huge economic growth in recent years, Ireland is a long way from being a society characterised by fairness, equality and wellbeing.
"After a period of great national prosperity, it is clear that many have benefited little from the boom times," Fr Seán Healy, director of Cori Justice, said. "However, almost three-quarters of a million people still live with incomes equivalent to less than the poverty line."
Latest figures showed that 720,774 people - 17 per cent of the total population - earn less than the standard poverty line recognised by the European Commission and the United Nations of €11,400 for a single person and €26,400 for a household of four.
Despite the figure, the number of people with incomes below that has dropped by 120,000 in the last seven years, when 21.9 per cent of the population was at risk.
"This reduction is welcome but far more needs to be done to ensure every man, woman and child in Ireland has sufficient income to live life with dignity," continued Fr Healy.
"It is time that Irish policy-makers took the initiatives required to dramatically reduce the number of people at risk of poverty and developed the services in areas such as education, health and accommodation to ensure that all can live life with dignity."
The review said although almost 30 per cent of all households at risk of poverty are headed by a person with a job, half of homes at risk are headed by someone outside the labour force and unable to work (elderly/disabled/carers), and less than 15 per cent are headed by someone who is unemployed.
It also said over a fifth of all children in Ireland are at risk of poverty.
Cori Justice maintained that to tackle income poverty the Government should change the tax system and increase social welfare and child benefit payment rates.
Cori, which is a social partner, represents more than 135 religious congregations with 11,000 members in 1,300 communities throughout Ireland.