Two-thirds of Irish tax-payers would support the Government's plans for pay-related unemployment benefit. 

If implemented, people on higher wages would be paid a higher unemployment benefit if they lost their jobs. 

Over a quarter said they would support it for a limited amount of time, while just one in four said the benefit should be the same for everyone, regardless of how much income tax they previously paid. 

Taxback consumer tax manager Marian Ryan said it is a tricky one for the Government. 

“The current rate of unemployment benefit could be a real struggle for most people,” she said. 

“But particularly for those people on higher wages because they would see a massive fall off [in income], a cliff edge there should they lose their job. 

“It’s a tricky one for the Government to navigate, as it’s also important to be seen to be putting measures in place that will help everyone in society and not favour one group over another.” 

Under the reforms, the top rate of unemployment benefit will be €450 a week, or 60% of a person’s prior income if they have made at least five years PRSI contributions; that rate will be paid for the first three months. 

For the following three months, unemployment benefit will fall to a maximum of €375, or 55% of a person’s previous income. 

After that, it will fall again to €300 for a further three months. 

Government go ahead

Cabinet approved the changes in November and Minister for Social Protection Heather Humphreys said she was “delighted” to have received the green light from colleagues. 

“This new system represents an enhanced safety net for workers and will help to soften the cliff-edge drop in income that can be faced when a person suddenly loses their job,” she said. 

“The introduction of Pay-Related Benefit will bring Ireland in line with the vast majority of European countries that already operate similar systems.”

The current maximum rate of jobseeker’s allowance is €232 a week.

Main image: Euro bank notes.