Pay-Related Benefit Scheme to come into effect in March 2025

Minister for Social Protection, Heather Humphreys has today announced that the new Pay-Related Benefit Scheme will come into effect on 31st March 2025.

Pay-Related Benefit represents a landmark reform of the social protection system and will ensure that people with a strong work history receive a higher payment if they lose their jobs.

Minister Humphreys has signed the commencement order that will make the new system operational from 31st March.

The introduction of Pay-Related Benefit will bring Ireland in line with other EU countries and benefit people who have a strong and recent attachment to the Labour Market.

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.

Commenting today, Minister Humphreys said:

“I’m delighted to sign the order which means that Pay-Related Benefit will come into effect on 31st March 2025.

“Under these landmark reforms, people who have a long work history and who have contributed to the system via their PRSI will receive enhance benefits if they find themselves in that awful situation of losing their job.

“We have seen situations in the past where companies can close and workers face a sudden and large drop in their income.

“Pay-Related Benefit is all about providing workers with a greater safety net and cushioning them from a sudden ‘cliff-edge’ drop in income.”

Minister Humphreys continued:

“At the moment, when a person who has worked hard for twenty years suddenly loses their job, they receive the same rate of unemployment payment as somebody who might never have worked.

“We need to reward the people who have worked hard; paid their dues; and contributed to the economy through their PRSI contributions. That’s what Pay-Related Benefit will achieve.

Pay-Related Benefit will be available to people who become fully unemployed.

The existing Jobseeker’s Benefit scheme is being retained for people who may not be eligible for the new scheme because they are working on a part-time, casual, short-time or seasonal basis.

The Department is working on the necessary ICT changes and technical administration arrangements required for Jobseeker’s Pay-Related Benefit to go live from 31st March 2025.

Further details of the scheme and the application process will be made available on the Department’s website at gov.ie – Jobseeker’s Pay Related Benefit (www.gov.ie)