Key features of the new Pay-Related Benefit scheme include:
- The weekly rate of payment for people who have at least 5 years paid PRSI contributions will be set at 60% of previous earnings, subject to a maximum of €450 for the first 3 months.
- After that, the rate will reduce to 55% of earnings, subject to a maximum of €375 for the following 3 months.
- A further 3 months will be paid at the rate of 50%, up to a maximum €300 payment.
- For people who have between 2 and 5 years paid contributions, the rate will be set at 50% of previous earnings subject to a maximum for €300 per week and 6 month’s duration.
- The scheme will be available to persons who become fully unemployed after the commencement of the scheme.
- The Minister will bring forward a commencement order for the introduction of Pay Related Benefit later this year once the necessary IT systems have been developed.
- People who lose their job before that date will be remain entitled to the existing Jobseeker’s Benefit.
a) taking strategic redundancies/quiting to get paid during a year out/travel, then get a new job.
Big incentive to do this. If you’re a middle-income earner something like 60% gross will be around 75% net, and if you remove commuting and other work-related costs you won’t be much worse off.b) near retirement going a year early
Where an employer and employee agree to a redundancy in the knowledge that pay-related benefits will put them on a gentle glide toward retirement.What is strategic Redundancy ?
.... I think that you would need to have applied for, and been refused, a social welfare benefit in order to be eligible for the supplementary pension.go straight to supplementary pension
Did I calculate correctly that this translates into a pay related benefit unless your previous gross yearly salary exceeds €39K, where it'll be flat rate of €450 per week regardless if you earnd 40K or 140K?Landmark legislation to introduce Pay-Related Benefit in Ireland passed by the Oireachtas
Yes, well worked outDid I calculate correctly that this translates into a pay related benefit unless your previous gross yearly salary exceeds €39K, where it'll be flat rate of €450 per week regardless if you earnd 40K or 140K?
"The Minister will bring forward a commencement order for the introduction of Pay Related Benefit later this year once the necessary IT systems have been developed." (link) So maybe in about 15-20 years?Still asking if anyone has an idea when the higher payment is expected to start?
Lenihan I believe in 2011 during the financial crisis.It was capped. The idea bring you only received a limited benefit, so it was unfair to take unlimited PRSI off higher earners. May have been Charlie McCreevy and Bertie who removed the cap.
There is also the problem of Class S players not paying enough for the benefits they now receive.
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