Dáil Éireann Debate, Tuesday - 28 June 2016
293. Deputy Michael McGrath asked the Minister for Social Protection the number of claims under the redundancy payments scheme in each of the years 2011 to 2015 to date, in tabular form; and if he will make a statement on the matter. [18418/16]
View answerThe purpose of the redundancy payments scheme is to compensate employees for the loss of their jobs where the employer is unable to pay statutory redundancy due to financial difficulties or insolvency. Redundancy payments are based on the employee’s length of reckonable service and reckonable weekly remuneration. The scheme is funded by the Social Insurance Fund, which is made up of PRSI contributions from employers, employees and self-employed.
The table sets out the number of claims under the redundancy payments scheme between 2011 and 2015. The claim load has fallen from almost 50,000 in 2011 to just over 4,300 in 2015, a reduction of 90 per cent. Expenditure has also reduced from €312 million in 2011 to €35 million in 2015, a decrease of around 90 per cent.
The downward trend in claims and expenditure reflects the Government decision to abolish the rebate to employers (who could pay statutory redundancy) in 2013. It also highlights the decline in job losses following the return to economic growth.
Redundancy Payments Scheme Claims and Expenditure 2011 – 2015
|
Year |
Claims processed |
Expenditure |
|
2011 |
49,762 |
€311.96m |
|
2012 |
33,072 |
€301.76m |
|
2013 |
14,088 |
€126.10m |
|
2014 |
6,883 |
€ 64.6m |
|
2015 |
4,333 |
€ 34.9m* |
*Draft expenditure figure for 2015, pending completion of the SIF Accounts
