Proposals for a new Pay-Related Benefit for Ireland released today

The benefit would be payable for up to six months.

The government is set to introduce new pay-related jobseeker benefit payments widely used across Europe.

The pay-Related Benefit links a person’s jobseeker’s payment to their previous earnings and work history.

It is designed to soften the income shock that a worker may face if they suddenly lose their job.

The draft proposals for the introduction of the Pay-Related Benefit System are contained in a ‘Strawman’ published today.

The ‘Strawman’ paper, which will now go out for public consultation, proposes for people who have been in insurable employment for at least five years, of which six months must have been in the previous 12 months, the benefit would be set at 60% of prior gross income up to a maximum payment of €450 per week.

For people who have been in insurable employment for between two and less than five years, of which six months must have been in the previous 12 months, the benefit would be set at 50% of prior gross income subject to a maximum payment of €300 per week;

The benefit would be payable for up to six months.

Minister Heather Humphreys TD published draft proposals today for the introduction of the new payment scheme.

““Pay-Related Benefit works well across Europe and it can work in Ireland as well – we saw that clearly during the pandemic when a person’s unemployment payment was linked to their prior earnings,” says the minister for social protection.

“I believe the introduction of a Pay Related Benefit system could be one of the key legacies of the pandemic but it’s important that we get it right. That’s why I am inviting people today to give their views on these draft proposals. The feedback received during this consultation process will help to shape the choices around the final design.”

As part of the public consultation process, submissions are being invited from all interested stakeholders, including employees, jobseekers, representative organisations, and employers by 28th February 2023.

While the Strawman primarily focuses on jobseekers' support, feedback received as part of the public consultation will also help to inform the consideration of potential changes to other short-term income supports for workers who have to temporarily cease work such as Maternity Benefit, Parental Leave Benefit and Illness Benefit.