Minister Humphreys proposes weekly payments for workers who lose jobs

Minister for Social Protection Heather Humphreys has put forward a proposal to bring government payments to workers who have lost their jobs in line with EU standards.

Currently, Irish workers that lose their jobs receive a flat rate of €220 per week from the government regardless of their previous income or how long they have contributed to the Payment Related Social Insurance (PRSI) system.

Humphreys' proposal would bring compensation to 60% of a worker's previous pay up to a maximum of €450 a week.

She says this would level out the sharp "cliff edge drop" many experience upon losing their jobs, and bring Ireland in line with 27 other EU countries that offer a percentage of income rather than a flat rate.

In a May 23rd Oireachtas debate concerning the proposal, Humphrey clarified, "Under the current scheme, the basic rate for both jobseeker's allowance and jobseeker's benefit is the same at €220, which means that someone who never worked a day gets the same rate of payment as someone who has worked, for example, for 20 years and has contributed to the system by paying PRSI."

Despite Humphreys' attempts to fast-track the measure, it will likely not receive cabinet sign-off until September, due to the number of other urgent proposals the cabinet is considering, including those on housing reform and gender equality protections.

Reforming the employment insurance system has become an especially heightened priority in the face of recent widespread layoffs across the country following the economic hardships suffered by many during the pandemic.

Among other issues, Ireland's previously booming tech sector has been contracting for the past three years according to the EU agency Eurofound.

📰 NEW BLOG - Big tech dismissals: What is the impact in the EU? https://t.co/86jrt5qQ2D

From 2019 to 2022, 5 of the big tech companies grew their workforce by over 50%.

Apple is a curious outlier, with the smallest increase in headcount during the pandemic & no large job cuts. pic.twitter.com/pqXE5KcTSG

— Eurofound (@eurofound) July 9, 2023

Their analysis released earlier this month found roughly 40% of tech layoffs in the EU were Irish jobs. Ireland is home to the headquarters of many big tech companies that have recently downsized their workforce, including Meta, which cut another 490 Irish jobs in May.

Other sectors have also been shrinking. The temporary layoff of 600 workers at the Tara mines in Co Meath has made headlines in recent weeks, as have the closures of several branches of the Iceland frozen food chain.

Workers from Tara Mines attended a meeting with Oireachtas members in Leinster House today.

👷‍♂️✊ pic.twitter.com/IeV0ihVqZd

— SIPTU (@SIPTU) July 12, 2023

The issue of employment insurance payouts was brought squarely into the light during the Covid-19 pandemic, when benefits were raised by nearly 60%.

"The Minister is right that the pandemic rate of €350 highlighted, in many ways, the inadequacies of how the current social welfare jobseeker's allowance rate protects people.

"While acknowledging that we need to pay more to protect people in the short term, there is a bigger discussion to be had on whether we perhaps need to pay more in the longer term as well," said Fianna Fáil TD Paul McAullife in the same Oireachtas session earlier this year.

Minister Humphrys anticipates the proposal will not come into affect until next year, as it will likely require changes to current legislation.