Major social welfare boost for thousands of Irish as new cash benefit on cards

A NEW increase in social welfare is set to come in to play for those who have lost their jobs.

The boost in payments will see higher earners paid even more in social welfare allowances.

And these changes are set to kick in towards the end of the year.

The Minister for Social Protection, Heather Humphreys TD, announced this week that the Social Welfare (Miscellaneous Provisions) Bill 2024 has been approved by both houses of the Oireachtas.

And it is set to be presented to Michael D Higgins for signing.

The measure represents a significant overhaul of Ireland’s social welfare system.

It will ensure that those with a solid work history who find themselves unemployed and forced to claim Jobseeker’s Benefit will receive enhanced welfare that is suitably in line with their previous salary.

Currently, workers who lose their jobs are entitled to a flat rate of €232 a week under the jobseekers benefit.

However with the new proposal, workers who earned a higher salary whilst employed could be entitled to almost double this.

Workers having a strong job-related commitment and at least five years of PRSI contributions would get 60% of their prior gross weekly earnings.

And so, under the new Pay-Related Jobseeker’s Benefit they may be entitled to up to a weekly maximum of €450.

After that, the rate will drop to 55 per cent of earnings, subject to a maximum of €375 for the following three months.

And then a further three months will be paid at the rate of 50 per cent, up to a maximum €300 payment. 

People who have contributed between two and five years of PRSI will be eligible for a new scheme, seeing them receive 50 per cent of their former income.

This will be up to a limit of €300 per week for a maximum of six months.

This initiative will be available for anyone who finds themselves jobless after the start date however you must be actively seeking employment.

And for those who were made jobless before the proposed start date will only qualify for the current jobseeker’s benefit.

Ireland will now follow most of Europe in which unemployment benefits are determined by prior earnings — a system that has not existed previously.

The majority of EU countries choose pay-related social welfare, which provides a percentage of previous salaries to help people maintain their level of living while they look for new job prospects.

Minister Humphreys remarked: “At the moment, when a person who has worked hard for twenty years suddenly loses their job, they receive the same rate of unemployment payment as somebody who might never have worked. That’s not fair.

“We need to reward the people who have worked hard; paid their dues; and contributed to the economy through their PRSI contributions. That’s what Pay Related Benefit is about.”

“This is about supporting workers who lose their employment by ensuring they don’t suffer a cliff-edge drop in income.”