Cost of living Ireland: Workers entitled to new €450 payment as start date confirmed

After months of consideration the Minister for Social Protection, Heather Humphreys, announced that start of a new payment scheme that has three rates depending on criteria

Workers are entitled to a new payment up to €450 as its start date has been confirmed.

The Minister for Social Protection, Heather Humphreys, has been speaking about the Pay-Related Benefit for several months, with her now signing the commencement order.

The scheme will be available to people who become fully unemployed and that meet certain criteria as there are three rates that can be accessed.

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The existing Jobseeker’s Benefit scheme is being kept for people who may not be eligible for the new scheme because they are working on a part-time, casual, short-time or seasonal basis.

Pay-Related Benefit will begin on 31 March 2025, as the necessary changes are made to ensure its operation.

In order to qualify for the benefit, a person must have at least 104 employment contributions in the period since entering insurance, at least four employment contributions in the 10 weeks immediately prior to the date the application for benefit is made; and at least 26 employment contributions in the 52 weeks immediately prior to the first week for which they are claiming benefit.

Under the new system, there will be three rates of payment as follows:

• a top rate of a maximum of €450, or 60 per cent of your prior income, for people who have made at least five years PRSI contributions. The €450 rate will be paid for the first three months;
• a second rate of a maximum of €375, or 55 per cent of your prior income. This will be paid for the following three months;
• a third rate of a maximum of €300, or 50 per cent of your prior income for the final three months.

Speaking about the new scheme, Minister Humphreys said: “I’m delighted to sign the order which means that Pay-Related Benefit will come into effect on 31st March 2025.

“Under these landmark reforms, people who have a long work history and who have contributed to the system via their PRSI will receive enhance benefits if they find themselves in that awful situation of losing their job.

“We have seen situations in the past where companies can close and workers face a sudden and large drop in their income.

“Pay-Related Benefit is all about providing workers with a greater safety net and cushioning them from a sudden ‘cliff-edge’ drop in income.”

She continued: “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.

“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 will achieve.”

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