Ireland to Link Jobseekers’ Benefit payments to Work History with New Legislation

Social Protection Minister Heather Humphreys will introduce new legislation in the Dáil this week, tying Jobseekers’ Benefit payments to an individual’s work history. This initiative, the Enhanced Jobseekers’ Benefit, aims to align Ireland with other EU countries by providing higher benefits to those w ith a robust work history who lose their jobs.

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New Tiered System for Jobseekers’ Benefit Payments and Increased PRSI Contributions

Presently, Ireland is among four EU countries offering a flat rate Jobseeker’s Benefit, set at €220 per week, regardless of prior earnings or duration of employment. The proposed scheme will implement a tiered payment structure, granting higher benefits to those with extensive work histories. Payments for up to nine months will be made to individuals who have contributed to PRSI for at least five years.

The maximum amount per week for the first three months will be €450, and payments will begin at 60% of their prior wages. The rate will then decrease to 55% and 50% over the subsequent six months. For a period of six months, those who have made contributions for two to five years would get 50% of their prior earnings, up to €300 each week. 

To finance this scheme, PRSI contributions will gradually increase starting in October, beginning with a 0.1% rise, roughly 90c per week for an average worker. Additional annual increases, ranging from 0.1% to 0.2%, will continue until 2028.

Minister Humphreys highlighted that this new system will alleviate the financial burden of unemployment, offering greater support to those with significant work histories during their job search.