Plans to link a person’s social welfare payments to their previous incomes will be in place by the end of the year, Social Protection Minister Heather Humphreys has said.
The Fine Gael Minister said that introducing the programme will "soften the cliff edge drop" in a person’s income when they lose their job and must move onto social welfare.
The Pay-Related Benefit for Jobseekers will be paid to employees under 66 who were fully employed and had demonstrated a "strong, recent attachment to the workforce". A person must also be seeking employment in order to benefit.
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Someone with five years worth of PRSI contributions (six of which must have been earned in the previous 12 months) would receive 60 per cent of their previous income up to a maximum of €450.
Those with fewer than five years of contributions will be entitled to 50 per cent off their previous income up to a maximum of €300 per week.
People would be entitled to claim this amount of money for up to six months.
The maximum amount a person can receive per week on the Jobseekers Allowance is €220 per week. Additional allowances are given for adult and child dependents.
Minister Humphreys said that a person can claim whichever scheme will give them more money.
She explained: "It’s not just the basic [Jobseekers Allowance] payment, it’s the add-on payments you get depending on the number of children you have or whether your spouse is working or not.
"If it’s better to take the Jobseekers Allowance you’ll be allowed to take up that option instead of the pay-related benefit.
"Really, it’s specific to your pay. It doesn’t take account of how many children you have or how many benefits you have."
Minister Humphreys said that when people lose their job, moving from a higher wage to a social welfare payment can come as a shock.
She said that Ireland is an outlier and is the only European country that doesn’t have pay-related benefit.
Minister Humphreys made the comments as she launched a public consultation for the scheme in Dublin on Friday morning.
This consultation will run until the end of the month, with the Minister then working with her officials to devise a scheme.
The suggestion will then be brought to Government and it is envisaged that the new benefit will be in place by the end of the year.
The Fine Gael TD also said that there are no plans to change the benefits made available to Ukrainian refugees and International Protection Seekers.
Those fleeing the war in Ukraine currently receive the same benefits that an Irish citizen would receive, something Ms Humphreys said is "the right thing to do".
International Protection seekers receive a weekly allowance of €38.80 per adult and €29.80 per child and there are no plans to change this, she said.
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