From today, people who lose their jobs will have social welfare payments linked to their previous earnings for almost a year as part of a significant overhaul of the jobseeker’s allowance system.
The new scheme replaces the existing Jobseeker’s Benefit for people who become fully unemployed and who meet the contribution conditions for the scheme.
It is open to applications from people whose first day of unemployment is today.
Under the pay-related benefit system, the amount a person receives is linked to their previous earnings, subject to maximum and minimum rates of payment.
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It brings Ireland in line with other EU countries and represents a fundamental reform of the social welfare system.
[ New PRSI-linked unemployment benefit to commence in March, says MinisterOpens in new window ]
Under the new scheme, the weekly rate of payment for people who have at least five years’ paid PRSI contributions is set at 60 per cent of their previous earnings, subject to a maximum of €450, for the first 13 weeks.
After that, the rate will be 55 per cent of earnings, subject to a maximum of €375, for the following 13 weeks.
A further 13 weeks will be paid at the rate of 50 per cent of previous earnings, up to a maximum €300 payment.
For people who have between two and five years’ paid PRSI contributions, the rate is set at 50 per cent of previous earnings subject to a maximum of €300 per week and 26 weeks’ duration.
A weekly minimum rate of €125 will apply.
Applications need to be made within six weeks of a person losing their job and can be done on the mywelfare.ie portal or through Intreo centres.
Minister for Social Protection Dara Calleary welcomed the rollout of the scheme, which he said had been a key commitment in the Programme for Government.
“If you lose your job, the sudden loss in income can be difficult to adjust to. The Jobseeker’s Pay-Related Benefit will help people during this period of uncertainty while they seek new employment,” he said.
The existing Jobseeker’s Benefit scheme is being retained for people already in receipt of Jobseeker’s Benefit and 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.
Self-employed people continue to be supported under the current Jobseeker’s Benefit (Self-Employed) scheme.
