---

Date set for pay-related benefits scheme

A new pay-related benefit that will give bigger payments to people with at least five years of PRSI contributions is to come into effect on 31 March next year.

The relevant legislation, the Social Welfare (Miscellaneous Provisions) Act 2024, was enacted earlier this year.

The Minister for Social Protection Heather Humphreys has now signed the commencement order that will bring the new system into effect.

Key features of the new benefit scheme include:

• The weekly rate of payment for people who have at least five years paid PRSI contributions will be set at 60% of previous earnings, subject to a maximum of €450 for the first three months,
• After that, the rate will reduce to 55% of earnings, subject to a maximum of €375 for the following three months,
• A further three months will be paid at the rate of 50%, up to a maximum €300 payment, and
• For people who have between two- and five-years’ paid contributions, the rate will be set at 50% of previous earnings, subject to a maximum of €300 per week and six months’ duration.

‘Cliff-edge’ drop

Minister Humphreys said that the change was aimed at providing workers with a greater safety net and cushioning them from a sudden ‘cliff-edge’ drop in income.

“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,” she stated.

“At the moment, when a person who has worked hard for 20 years suddenly loses their job, they receive the same rate of unemployment payment as somebody who might never have worked,” she added.

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 of Social Protection says that it is working on the necessary IT changes and technical-administration arrangements required for Jobseeker’s Pay-Related Benefit to go live from 31 March.