A major restructuring of the social welfare system could see Jobseeker's Benefit double for some recipients.
The proposals would link employees' past working history to welfare payments in the early period of unemployment, allowing jobseekers payments of up to €450. The hgue overhaul of the welfare system is due to go before Cabinet later this week.
Speaking in Drimnagh on Monday, Social Protection Minister Heather Humphreys rejected the idea that such changes amount to a two-tier social protection system, saying the scheme will avoid a "cliff-edge" for people who lose their jobs.
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She said: “A lot of people pay into the social insurance fund and then when they become unemployed they face a sudden cliff edge in their incomes. And I want to ease that for them."
Workers with five or more years of PRSI contributions will be entitled to 60 per cent of their gross weekly salary, capped at €450 per week, under the new plans. Meanwhile workers who have contributed to the PRSI system for between two and five years will be entitled to 50 per cent of their gross weekly salary or up to €300 per week.
Those with less than two years of PRSI contributions will receive the current rate of €208 per week. This is set to rise to €220 in January following the increase in welfare rates in Budget 2023.
Employees who have lost their jobs will need to have made PRSI contributions in six of the 12 months before they became unemployed to avail of the higher rates of jobseeker payments. After it is introduced to Cabinet tomorrow, Minister Humphreys' Department’s proposal will then go to a consultation period with trade unions and employers' groups and will be reviewed late next year.
Ms Humphreys has earmarked the scheme as one of her key policy objectives since she was appointed Social Protection Minister. The plan has been welcomed by the trade union Siptu, with one of a spokesmen telling Newstalk that it would allow people to continue spending, which would help the economy.
Similar schemes where workers receive graded welfare payments based on their salaries have been introduced in other European countries such Germany and Estonia.
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