Job seekers to be paid up to €450 per week or 60% of their previous salaries

Social Protection Minister Heather Humphreys was given approval to draft a general scheme a new bill which would overhaul how Jobseekers' Benefit is paid.

Those who lose their jobs will be paid up to €450 per week or 60% of their previous salaries under plans approved by the Government.

Social Protection Minister Heather Humphreys was given approval to draft a general scheme a new bill which would overhaul how Jobseekers' Benefit is paid.

The introduction of Pay-Related Benefit will bring Ireland in line with other EU countries, a statement said, and will "ensure that people with a strong work history receive enhanced benefits if they lose their employment".

Under the new system, there will be three rates of payment:

• A top rate of a maximum of €450, or 60% of prior income for people who have made at least five years PRSI contributions. This rate will be paid for the first three months;
• A second rate of a maximum of €375, or 55% of prior income paid for the following three months;
• A third rate of a maximum of €300, or 50% of prior income for the final three months.

For people who have between two and five years of paid contributions, the rate will be set at 50% of previous earnings subject to a maximum for €300 per week and six months duration.

A minimum weekly payment of €125 will apply.

Ms Humphreys said that the move was designed to end a "cliff edge" to incomes after redundancies.

“I’m delighted today to have secured Cabinet approval to draft law that will provide for the introduction of a new Pay-Related Benefit System.

“Under these major reforms, people who have a strong work history and who have contributed to the system via their PRSI will receive higher benefits if they find themselves out of work.

“This is about ensuring that people who have worked for long periods, perhaps even all their working lives, won’t suffer that cliff edge drop in their income if they become unemployed.” 

Ms Humphreys will now begin the pre-legislative scrutiny process by providing a copy of the general scheme to the joint Oireachtas committee on social protection, community and rural development and the Islands for its consideration.

It is aimed that the measure will be introduced by the last three months of 2024.