Dáil Éireann Debate, Thursday - 7 December 2023
158. Deputy Paul Murphy asked the Minister for Social Protection her reasons for not supporting proposal a union (details supplied) for pay-related jobseeker’s benefit to be paid at a maximum of 70 per cent of salary or €550 for nine months; and if she will make a statement on the matter. [54224/23]
View answerI secured approval of Government on 21st November 2023 to proceed with design proposals for a new Pay-Related Benefit for Jobseekers which would link the rate of benefit to a person's previous earnings. Budget 2024 included provision for such a scheme to be introduced in late 2024.
The aim of a pay-related benefit scheme is to soften the income shock that a worker may face if they suddenly lose their job and will bring Ireland in line with its European neighbours.
I launched a public consultation process on proposals for the Pay-Related Benefit for Jobseekers with the publication of a Strawman document in December 2022. My Department undertook an extensive consultation process and engagement with interested stakeholder groups including the Irish Congress of Trade Unions. Feedback received during the consultation process informed the final proposals I brought to Government on 21st November, including the proposal to keep a nine-month payment duration in line with the existing Jobseeker's Benefit.
The Pay-Related Benefit will be available to newly unemployed persons who have a strong and recent attachment to the labour market, and who are available for and genuinely seeking employment.
The weekly rate of payment for people who have at least 5 years paid PRSI contributions will be set at 60% of previous earnings subject to a maximum of €450 for the first 3 months. After that, the rate will reduce to 55% of earnings subject to a maximum of €375 for the following 3 months. A further 3 months will be paid at the rate of 50% up to a maximum €300 payment.
For persons who have between 2 and 5 years paid contributions, the rate will be set at 50% of previous earnings subject to a maximum of €300 per week and 6 months duration. The duration of payment is the same as which a person would get under jobseeker's benefit.
A minimum weekly payment of €125 will apply to the scheme.
In line with the current arrangements, a person will be able to opt for the means-tested jobseeker's allowance if they would be financially better off on that scheme.
I am satisfied that the model for the Pay-Related Benefit approved by Government addresses concerns raised about the payment duration while ensuring that the scheme will not act as a disincentive to employment.
I trust this clarifies the position for the Deputy.
