Pay-Related Benefit represents a landmark reform of the social protection system(Image: No credit)

Heather Humphreys announces exact date landmark benefit scheme to come into effect

The brand new Pay-Related Benefit will be available to people who become fully unemployed

by · Irish Mirror

Social Protection Minister Heather Humphreys has announced the landmark new Pay-Related Benefit Scheme will come into effect from the end of March next year.

The new Pay-Related Benefit scheme will be available for people who become fully unemployed and will ensure people with a strong work history receive a higher payment if they lose their jobs.

As part of the new scheme, the weekly payment rate for people who have at least five years of paid PRSI contributions will be set at 60 per cent of previous earnings, subject to a maximum of €450 per week for the first three months.

READ MORE: Budget 2025: Full list of cost of living changes, including 'baby boost' and double payments

READ MORE: Budget 2025 recap as €2 billion worth of cost-of-living measures unveiled to public

Minister Humphreys has announced the new system will be in effect from March 31 and will bring Ireland in line with other EU countries and benefit people who have a strong and recent attachment to the Labour Market.

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.

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

Minister for Social Protection, Heather Humphreys(Image: Collins)

“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.”

Further details of the scheme and the application process will be made available on the Department’s website here.

Join the Irish Mirror’s breaking news service on WhatsApp. Click this link to receive breaking news and the latest headlines direct to your phone. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don’t like our community, you can check out any time you like. If you’re curious, you can read our Privacy Notice.