Social Protection Committee publishes report on the Social Welfare (Pay-Related Social Insurance and Jobseeker’s Pay-Related Benefit Provisions) Bill 2024

The key features of the general scheme of the Social Welfare (Pay-Related Social Insurance and Jobseeker’s Pay-Related Benefit Provisions) 2024 include:

• 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 month’s duration. (Payment stops after 6 months at present under Jobseekers Benefit for this cohort).
• 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.
• Self-employed people will continue to be catered for under the current Jobseeker’s Benefit (Self-Employed) Scheme.

In its pre-legislative scrutiny of this Bill, the Committee held a meeting with Officials from the Department of Social Protection and invited submissions from interested groups and individuals.

The Committee’s report makes three recommendations which are outlined below:

 The Committee’s report recommends that given the complexity of payment rates, there should only be one rate at a minimum 70% of previous earnings and one cap at a minimum €550, similar to the new statutory sick pay scheme.

 - The Department of Social Protection should publish a poverty and gender impact analysis of the proposal to individualise the payment.

 - A remodelling of the PRSI System with regard to the Universal Social Charge.

Speaking on the launch of the report, Committee Cathaoirleach Deputy Denis Naughten said: “This is an important piece of legislation which is intended to provide a more effective cushion against the income shock when a person loses their employment. These changes will bring Ireland in line with other European countries. The Programme for Government, the Economic Recovery Plan and the Pathways to Work Strategy 2021-2025 all include commitments in relation to a new Pay-Related Benefit scheme for jobseekers.”

“This legislation provides for Pay-Related Benefit being available to newly unemployed persons who have a strong and recent attachment to labour market, and who are available for and genuinely seeking employment. 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. Government has also approved the General Scheme to implement the range of changes to Pay-Related Social Insurance (PRSI) agreed November 2023, which will support the retention of the State Pension Age at 66 and provide for the introduction of Pay-Related Jobseeker’s Benefit.”

“This legislation seeks to address the cliff edge regarding social welfare payments and will also provide for increases to PRSI, further implementing the Committee’s recommendations in our report to the Minister on the Commission on Pensions. The Committee is encouraged by the fact that the Minister for Social Protection and the Government have adopted our recommendations and are now implementing them.”

Read the report here.