Workers who lose jobs to receive weekly payments of up to €450

Social Protection Minister Heather Humphreys has worked up proposals for pay-related benefits which she is now ready to bring to Cabinet. Picture: PA

Workers who lose their jobs will receive weekly payments of up to €450 linked to previous earnings, from next year, Social Protection Minister Heather Humphreys has promised.

Ms Humphreys has worked up proposals for pay-related benefits which she is now ready to bring to Cabinet. The new system of pay will see people receive 60% of their income from the State up to a maximum of €450 each week if they lose their job.

It is understood that Ms Humphreys has fast-tracked the measure in the wake of the temporary lay-off of almost 600 workers at Tara Mines in Co Meath last week.

“What I’m looking at is that when you lose your job and you have been making your PRSI payments, that a percentage of your income will be maintained through the social insurance fund,” said Ms Humphreys. “I’m looking at a few details and I plan to bring a memo to Cabinet or a proposal to Cabinet.”

While Ms Humphreys had hoped to bring the measure to her ministerial colleagues for sign-off before the final meeting of the summer, it is understood that a large volume of items already on the Cabinet agenda will push this out to September.

However, she has promised to have the new system of staggered rates of payment in place next year.

“It will be next year because it will require some legislation, I think.

“I will be moving it on as quickly as I can because it’s something that I’m very committed to doing and I absolutely believe is the right thing to do. 

It’s something I absolutely believe in and I think it’s so important that when somebody loses their job, they shouldn’t have to face this sudden cliff-edge drop in their income.”

Ms Humphreys, who worked in a credit union when the financial crash hit, said she witnessed the enormous pressure people receiving the flat-rate State payment came under.

“People came in through that door who never had lost a job before, they couldn’t believe that they were facing a huge cliff-edge drop in their income and it wasn’t easy.

“I think they should be able to soften that in some way because they have contributed, they have paid their PRSI, and it’s important that when you need this support that is there for you. So as I said, bringing proposals within the next number of weeks to Government.”

The minister had put forward a strawman proposal for pay-related benefits last year, which then went out for public consultation.

The Irish Congress of Trade Unions (Ictu) has called for the introduction of pay-related benefits, saying income protection for workers here is exceptionally weak compared to the rest of the EU.

“Despite workers paying pay-related social insurance contributions when in employment, they only receive a flat weekly payment if they lose their job, fall sick, or have a baby,” said Ictu president Kevin Callinan in the union’s submission. 

“In almost all other 27 member states, workers receive a percentage of their previous pay to protect them against a fall in living standards during short gaps in employment.

“Post-pandemic there is now a heightened public demand to strengthen our frayed social safety net. This cannot and should not be ignored.”