Jobseekers Allowance earnings threshold ?

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tony79

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If I am self-employed and my work is reduced to 3 days a week, I can apply for Jobseekers Allowance.

As this Allowance is means tested, is there any guide as to under what threshold your earnings have to be under to qualify for it ?
 
NOTE: Information in this post is not correct for case described!! See replies below

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Single person with no dependents, self-employed and have paid Class S PRSI
Entitled to Jobseekers Allowance subject to Means Test

Means Test:
- Work reduced to 3 days a week
- Receive €400 from those 3 days after the following are deducted;

  • PRSI (Contribution)
  • Union dues
  • Superannuation
  • PRSA (Personal Retirement Savings Account
  • AVCs (Additional Voluntary Contributions)
- Weekly assessable earnings = €400

Formula:
Weekly assessable earnings - €20 per day worked = total x 60% = weekly means from work.

€400 - €60 = €340 x 60% = €204

weekly means from work = €204

Formula:
Maximum Job Seekers Allowance - weekly means from work= Weekly Payment from Social Welfare

Job Seekers Allowance = Personal rate (claimant) €204.30 (maximum rate)

€204.30 - €204 = €0.30

In this case, the claimant would be entitled to €0.30 a week from Social Welfare, ie if you earn more than €400 from 3 days work you will not receive any Jobseekers Allowance.
 
Last edited:
Not so sure this info is correct, Tony 79. The OP states he is self employed. The example given relate to someone who is in wage earning employment. For JA purposes self employment earnings are assessed in full on an annual basis without disregards. The weekly means are therefore earnings in past year divided by 52.
 
Tony79's advice is incorrect, unfortunately (after all his hard work!). The fact that your work has reduced to 3 days a week is irrelevant when you're self-employed. Your weekly means is taken off the full weekly rate and you sign for the 6 days for that amount. Calculation of means is as per keypost links.
 
thanks for the replies, definitely more complicated than i thought, no matter how many times I check welfare.ie, revenue.ie, citizensinformation.ie, there always seems to be one more page of hidden information... !

Maybe you could clarify something though. If my means is calculated on my past earnings and not my present earnings then how does the Social Welfare system support self employed people who now have reduced work/income or are unemployed ?
if my annual self employed income for 2008 was €20,800, this would mean a weekly means of €400, which is above the JA full weekly rate so I would receive nothing ?
 
tony79 said:
thanks for the replies, definitely more complicated than i thought, no matter how many times I check welfare.ie, revenue.ie, citizensinformation.ie, there always seems to be one more page of hidden information... !

Maybe you could clarify something though. If my means is calculated on my past earnings and not my present earnings then how does the Social Welfare system support self employed people who now have reduced work/income or are unemployed ?
if my annual self employed income for 2008 was €20,800, this would mean a weekly means of €400, which is above the JA full weekly rate so I would receive nothing ?
Click to expand...


did you not read the keypost? This from it:

"I am self-employed but my income and work has drastically reduced in the past six months. Can I claim Jobseeker’s Allowance?
If you were previously self-employed, you can claim Jobseeker’s Allowance even if you are still partly self-employed. Your reduced income will be assessed as means.

Generally, the means assessment of a self-employed person will look at his/her earnings in the preceding 12 months and these would normally be used to project estimated earnings in the coming 12 months. However, in the current economic climate past earnings may bear little or no relationship to future earnings. The Inspector will take all circumstances into consideration when conducting the means test."
 
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