A new payment for recently unemployed people based on their previous Pay-Related Social Insurance (PRSI) contributions will be available in the spring of 2025, the Department of Social Protection has confirmed, after Minister Heather Humphreys signed a commencement order on Thursday.
The new Pay-Related Benefit scheme, which was approved by both Houses of the Oireachtas in the summer after being unveiled last year, will be available to people who recently lost their jobs and are seeking work.
The scheme is different from the jobseekers’ allowance because the scale of the payment differs depending on the recipient’s PRSI contributions over the previous five years.
Ms Humphreys said the introduction of the benefit from March 31st, 2025 will bring the Republic in line with other European countries, most of which have similar schemes in place.
Your work questions answered: Can bonuses be deducted pro-rata during a maternity leave?
Palantir, company at centre of row surrounding TD Eoin Hayes, is no stranger to controversy at home or abroad
Tips for avoiding a January credit-card hangover
Can I work for my foreign employer from my home in Ireland?
“Under these landmark reforms, people who have a long work history and who have contributed to the system via their PRSI will receive enhanced benefits if they find themselves in that awful situation of losing their job,” the Fine Gael TD said. “We have seen situations in the past where companies can close and workers face a sudden and large drop in their income.”
Three weekly payment rates will be available under the scheme for qualifying workers, the department said. A top rate of a maximum €450 – or 60 per cent of their prior income – will be available for people for three months after they lose their jobs if they have made at least five years PRSI contributions.
Budget 2025: What it means for Irish households and businesses
This falls to €375, or 55 per cent of earnings, for the following three months and then €300, or 50 per cent of prior earnings, for another three months.
The scheme will be available to workers who are fully unemployed and have paid a minimum of 104 employment contributions in the period since entering insurance.
They must also have at least four contributions in the 10 weeks immediately before the date of application and at least 26 employment contributions in the 52 weeks immediately before the first week for which they are claiming benefit.
The existing jobseekers’ allowance scheme is being retained for workers who do not qualify for the scheme, the department said.
“At the moment, when a person who has worked hard for 20 years suddenly loses their job, they receive the same rate of unemployment payment as somebody who might never have worked,” Ms Humphreys said.
“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.”
Speaking in the Dáil earlier this year, the Minister said pay-linked maternity benefit “is the next logical step” after the new scheme is introduced.
Its introduction has been welcomed by the Irish Congress of Trade Unions, which said in July the scheme would strengthen the social safety net for workers.
- Sign up for the Business Today newsletter and get the latest business news and commentary in your inbox every weekday morning
- Opt in to Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
