Bill to bring in pay-related benefits is passed
Legislation to introduce a new pay-related benefit that would give bigger payments to people with at least five years of PRSI contributions has passed all stages in the Oireachtas.
The legislation also provides for increases in all PRSI rates from 2024 to 2028, in a move aimed at supporting the Social Insurance Fund.
The Social Welfare (Miscellaneous Provisions) Bill 2024 will now be presented to the President for signing.
‘Reward’
The Department of Social Protection says that Minister Heather Humphreys will bring forward a commencement order for the introduction of the system later this year, once the necessary IT systems have been developed.
“We need to reward the people who have worked hard; paid their dues; and contributed to the economy through their PRSI contributions. That’s what pay-related benefit is about,” the minister stated.
“This is about supporting workers who lose their employment by ensuring they don’t suffer a cliff-edge drop in income,” she added.
PRSI rates
Key features of the new benefit scheme include:
- The weekly rate of payment for people who have at least five years paid PRSI contributions will be set at 60% of previous earnings, subject to a maximum of €450 for the first three months,
- After that, the rate will reduce to 55% of earnings, subject to a maximum of €375 for the following three months,
- A further three months will be paid at the rate of 50%, up to a maximum €300 payment, and
- For people who have between two- and five-years’ paid contributions, the rate will be set at 50% of previous earnings, subject to a maximum for €300 per week and six months’ duration.
The PRSI rate increases will come into effect on 1 October of each year from 2024 to 2028.
The minimum contribution for self-employed people and voluntary contributors (formerly self-employed) will also increase by €150 to €650 from 1 October 2024.