Jobseekers to get up to €450 in weekly social welfare payments, but there's a catch

New legislation that would provide jobseekers with up to €450 a week in welfare payments, or 60% of their previous salary, is to be introduced to the Dáil this week.

This is double the current rate of Jobseekers' Benefit and will be part of a new three tiered system for the social welfare payment.

The current rate of Jobseekers Benefit is €220 per week, and Minister for Social Protection Heather Humphreys has said that she wants to replace it with the three tiered system. The change is intended as part of efforts to bring Ireland in line with other EU countries.

The new €450 figure will only be paid weekly for the first three months, with the pay decreasing a second time after six months.

Legislation for the reform is being brought before the Dail this week, the Irish Examiner have reported.

Under the new system, the three tiers of payment are 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.

Minister Humphreys said: "The introduction of Pay-Related Benefit will also bring Ireland in line with other European countries that already have similar systems in place.

"This is about ensuring that people who have worked for long periods, perhaps even all their working lives, won’t suffer that cliff edge drop in their income if they become unemployed."

It was previously reported that the Government aims to have the scheme introduced by the end of this year.