First Minister John Swinney has called on the UK government to cover the National Insurance rises for charities, GPs, social care providers and universities in Scotland.
Making a case for the request, Swinney said the tax increase announced in the government's Budget on October 30 had caused "alarm across the country", the BBC reports.
The call comes in addition to the £500million cost, the Scottish government estimates, of offsetting extra staff costs for public sector employers.
The Treasury promised extra funds to help Holyrood and other devolved administrations deal with public sector costs.
It added that its tax system for charities was "among the most generous of anywhere in the world".
“It is completely unacceptable for our third sector to be punished as a result of decisions made by the chancellor," Swinney said at a conference in Edinburgh.
"The UK Budget must not be balanced on the backs of Scotland’s charities.
“The chancellor clearly did not foresee the extent of the problems her decisions would cause when she published her Budget – the panic and confusion that has emanated from the Treasury since makes that clear.
“But there is still time for the UK government to do the right thing and meet these costs in full."
A UK government spokesperson told the BBC more details would be announced "in due course" on the support available to devolved administrations to cover the costs of public sector employers.
The Treasury said the autumn Budget provided tax relief for charities and their donors worth just over £6billion for the tax year to April 2024.
A spokesperson added: “The government will protect the smallest businesses by increasing the Employment Allowance to £10,500 which means that next year 865,000 employers will pay no NICs at all.”