Dáil Éireann Debate, Tuesday - 16 June 2020
951. Deputy Paul Murphy asked the Minister for Employment Affairs and Social Protection if cash tips are to be included in assessing the eligibility of a person for the higher rate of the pandemic unemployment payment. [10893/20]
View answer985. Deputy Sean Sherlock asked the Minister for Employment Affairs and Social Protection if the new lower pandemic unemployment payment is based on earnings before or after tax. [10755/20]
View answer988. Deputy Alan Kelly asked the Minister for Employment Affairs and Social Protection the way in which the pre-pandemic unemployment payment income is calculated for part-time earners; the monthly earnings that have been taken into account for the assessment of income; and if she will make a statement on the matter. [10817/20]
View answerI propose to take Questions Nos. 951, 985 and 988 together.
On Friday 5th June the Government approved the extension of the Pandemic Unemployment Payment until 10th August. The rate of payment will remain at a flat rate of €350 until 29th June when a two-level payment structure will be introduced to link the pandemic unemployment payment level to gross prior earnings. This change to the payment structure will ensure that the rate is fair and targeted.
Where a person’s gross weekly earnings were €200 or higher there will be no change to their rate of payment. If a person’s gross weekly earnings were under €200 the rate of the pandemic unemployment payment will be adjusted to €203. This change will take effect in payments made from Tuesday 7 July.
To determine the gross weekly earnings for the purpose of calculating the rate of the pandemic unemployment payment the Department will examine the employee’s average gross weekly earnings in 2019 and January and February 2020, and the higher figure will be used. For example, if an employee’s average gross weekly earnings in 2019 were €195 and €210 in 2020, the figure of €210 will be used. Similarly if the employee’s average gross weekly earnings in 2019 were higher than in 2020, the 2019 figure will be used. Tips are treated as reckonable income and are taxed in the normal way.
For self employed people their gross average weekly income for 2018 will be used to calculate the rate of the pandemic unemployment payment, the last tax year for which verifiable data on self-employed income is available.
I hope that this clarifies the position.
