Social welfare Ireland: Start date for new €450 weekly payment confirmed and who will be eligible

There will be an overhaul of the social welfare system next year as the Department of Social Protection will bring in Pay-Related Benefit for people who have lost their job

The Department of Social Protection has confirmed when a new payment of up to €450 will be rolled out.

The new Pay-Related Benefit system in Ireland will ensure that people with a strong work history receive enhanced benefits if they lose their employment.

Minister for Social Protection Heather Humphreys has signed the commencement order that will make the new system operational from 31st March 2025.

Read more:Cost of living Ireland: Thousands qualify for lump sum payment worth nearly 10 times its weekly rate

Read more: Social welfare Ireland: Payment date confirmed for budget's €420 baby boost grant for parents

Unlike the jobseekers’ allowance, the pay-related benefit will be proportional to the PRSI the recipient paid up to five years before they became unemployed.

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.

In order to qualify for the benefit, a person must have at least 104 employment contributions in the period since entering insurance, at least 4 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.

The existing Jobseeker’s Benefit scheme is being retained 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.

Commenting this week, 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.”

Join RSVP Live's WhatsApp community to get celebrity news and our top stories