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Saturday, May 15, 2021

New unemployment payment will be linked to past working history

A new Interim unemployment payment system is likely to be introduced when the Pandemic Unemployment Payment is phased out by the government.

This new payment will be linked to previous PRSI contributions and past working history. It has been described as a significant change in the social welfare system in Ireland.

Those who have been working in long-term employment will be entitled to a higher payment than the current standard payment as they will receive a percentage of their salary for a specific number of weeks or months when they lose their job.

Once the interim period is over, the standard payment will only be received.

Tánaiste Leo Varadkar stated, “I think part of phasing out the PUP isn’t just about phasing it out, it’s bringing in a new payment to give people a little bit more in the first couple of weeks or first couple of months of unemployment, because it is very hard to adjust to the income you were getting from work to a social welfare income. I think that it is one of the positive aspects of the pandemic alongside statutory sick pay,” while adding that such a system is the norm in Europe.

If an individual has been paying PRSI for a number of years then they will receive a little extra on top of their payment which will range from €203 to €350, depending on what was earned before unemployment.

Those who don’t have enough contributions will be placed on the existing payment of €203.


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