Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I thank Deputies for their contributions. The introduction of the new pay-related jobseeker's benefit is a major reform of how we support jobseekers in Ireland and will bring us in line with our European neighbours. Pay-related benefit will provide a greater support to people who lose their jobs and find themselves in the position of dealing with that income shock while continuing to meet their financial commitments. We all know that this can be a distressing experience for people and the new benefit will offer a greater cushion while they seek alternative employment.

As I outlined earlier, the weekly rate of payment for people who have at least five years of paid PRSI contributions will be set at 60% of previous gross earnings, subject to a maximum of €450 for the first three months. This rate will be available to workers on average incomes across all sectors, which is almost a doubling of the current personal rate of jobseeker's benefit. These higher rates of payment will help people with their financial commitments and will mean that they can continue to put money into their local economies. The Bill provides a framework for this change and will be able to accommodate the inclusion of additional groups of workers in the pay-related benefit approach should the Government decide to do so in future.

The programme of gradual, incremental increases in PRSI as already agreed by the Government will support the retention of the State pension age at 66, help address the long-term sustainability challenges facing the Social Insurance Fund and also provide for the jobseeker's pay-related benefit. As I mentioned in my opening statement, I intend to table Committee Stage amendments to increase the employer PRSI threshold from €441 to €496 per week from 1 October this year. Ensuring employers with employees working full-time on the minimum wage will only pay the lower rate of employer PRSI is just one of a number of Government measures to reduce costs for small and medium businesses. I look forward to Members' support for this amendment.

Deputies have raised a number of important issues. I would like to respond to some of those. Sinn Féin has been clear that it does not want to increase PRSI as set out in this Bill. How does it plan to pay to keep the pension age at 66? The cost of this PRSI increase for the average industrial worker on around €45,000 per annum is 90 cent per week.

See this speech in context