Cabinet gives approval to draft law for new Pay-Related Jobseeker’s Benefit

Minister Heather Humphreys has secured Cabinet Approval to draft law that will introduce a new Pay-Related Jobseeker’s Benefit.

According to the Department of Social Protection, approval of the general scheme for the Bill represents ‘a major step’ in delivering a fundamental reform of Ireland’s social welfare system.

The Department also said that the introduction of Pay-Related Benefit will bring Ireland in line with other EU countries 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 as follows:

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

Speaking yesterday, Minister Humphreys said:

“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.

“The introduction of Pay-Related Benefit will also bring Ireland in line with other European countries that already have similar systems in place.

“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.”

As agreed by Government, the Minister 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.

The Minster will also publish the general scheme on the Department’s website.

The Department says it will work on the necessary administrative, technical and IT arrangements over the coming months to facilitate the introduction of this scheme in Quarter 4 of this year.

As per the PRSI Roadmap which has already been agreed by Government, there will be incremental increases in all classes of PRSI (employer, employee and self-employed) over the coming years. These increases will support the retention of the State Pension Age at 66. All classes of PRSI will increase by 0.1 per cent from October 2024, followed by a further 0.1 per cent in October 2025, gradually rising to 0.2 per cent in October 2028.

A 0.1 per cent increase works out at around 90 cent per worker per week.

In relation to the PRSI Roadmap, Minister Humphrey’s said:

“As previously announced, it has been agreed by Government that all classes of PRSI will increase by 0.1 per cent from October 2024, followed by further modest increases up until 2028.

“These measures will ensure that we can retain the State Pension age at 66 years and also provide for Pay-Related Benefit.”