Unions have today (31 March) welcomed the rollout of a new pay-related unemployment social insurance payment, which brings to a successful end an ICTU-led 2021 Flat Broke campaign.
General secretary of the Irish Congress of Trade Unions, Owen Reidy said:
“For too long workers have been left to suffer a collapse in income after losing their job. Only four EU27 members states - Ireland along with Greece, Malta and Poland - pay a flat-rate payment to recently unemployed workers (€244 a week). That’s about to change.
“Across the rest of the EU, it is standard practice for contributory welfare payment rates to be linked to a worker’s previous earnings, to allow workers continue to pay their bills and protect their normal living standards in the short-term while looking for a new job.
“The financial fallout from our Dickensian attitude toward social welfare was brought into sharp focus when the country had to go into lockdown five years ago, and again when the 650-strong workforce in Tara Mines were laid off in 2023. As we now prepare for a trade war, social policies that protect household spending will be vital for impacted workers and local economies.”
Under the new Pay-Related Jobseeker’s Benefit, workers with a strong attachment to the labour market and record of paying PRSI contributions will receive up to 60% of their previous gross weekly wage capped at €450 a week.
Mr Reidy added: “The Irish Congress of Trade Unions and affiliated unions welcome this shift to a European-style social insurance system and strengthening the social safety net for workers. However, the maximum payment cap has remained at €450 since the new payment was first proposed by the Department of Social Protection back in February 2023. Since then, working-age welfare rates have increased by €24 a week or 10%. The payment cap cannot be allowed to stagnate and ideally should be assessed on an annual basis and adjusted in line with increases in earnings.”
Notes to Editor
The current €244 Jobseeker’s Benefit for unemployed workers replaces a quarter of the average weekly gross wage or less than half the full-time minimum wage. Whereas pay-related unemployment benefits in Belgium replace 91% of a worker’s previous wage, 79% in Denmark and 69% in the Netherlands.
Jobseeker’s Benefit will be replaced by a new Pay-Related Jobseeker’s Benefit for employees who lose their job from today.
The payment amount and the period it will be paid for will be linked to the unemployed worker’s previous gross weekly wage and PRSI contribution record –
- A jobseeker who has worked and paid PRSI for five or more years will receive 60% of their previous gross weekly wage up to a maximum €450 a week for the first 3 months of unemployment. This will reduce to 55% capped at €375 a week for months 4, 5 and 6 and to 50% capped at €300 for months 7, 8 and 9. If they are still unemployed after 9 months they can transfer over to the means-tested payment for the long-term unemployed, Jobseeker’s Assistance (€244).
- A jobseeker who has worked and paid PRSI for between two and five years will receive 50% of their previous gross weekly wage up to a maximum of €300 for the first 6 months of unemployment. If they are still unemployed after 6 months they can transfer over to the means-tested payment for the long-term unemployed, Jobseeker’s Assistance (€244).
The average time spent on contributory Jobseeker’s Benefit is 13 weeks, with 70% of workers in a new job within six months of signing on.
