Mothers-to-be can look forward to bumper maternity leave payments of potentially €500 a week under plans being considered by Social Protection Minister Heather Humphreys.
The Irish Mirror has learned that maternity pay is one of the benefit payments that the minister is looking at linking in line with what you actually have paid into the PRSI pot.
This will be part of a move towards a new social welfare system which is moving towards what a source last night called “exactly what it says on the tin”-style payments.
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They explained that this would pay more out to people who have paid more into the Exchequer purse. in taxes, "marking a clear and definite link to the ‘Pay’ part of PRSI." PRSI stands for Pay Related Social Insurance.
It is also understood that unemployment benefit will similarly be linked to how much and how long you have paid PRSI for.
Minister Hunphreys will make the announcements about the major reforms after the Coalition’s weekly Cabinet meeting tomorrow morning.
A senior Government source told the Mirror: “This is about softening that sudden income shock that many workers face at some stage or another during their lifetime.”
The plans for unemployment benefit hikes for higher earners are understood to include plans to pay recently unemployed up to 60% of their final weekly salary, if they have the necessary PRSI contributions built up.
It is believed that this would be capped at €450 a week, which would still be more than double the regular dole payment of €208 - due to go up to €220 on January 1st.
If a similar system was applied to maternity benefits it could see women on maternity leave paid in the region of €500 a week, as the regular payment is €250 a week currently.
However, the Government source the Mirror spoke to last night said: “it is too premature to put a figure on it.”
In relation to unemployment benefit specifically, the Mirror has learned that workers with five plus years of PRSI paid could potentially get 60% of their finishing weekly pay, capped at €450 per week.
A worker with between two and five years’ worth of PRSI points paid could be entitled to 50% of their pay, capped at €300 per week.
Another condition will be that a worker will need to have made PRSI contributions in six of the 12 months before they became unemployed to get the higher payments.
Another rule will see those with less than two years of PRSI payments to the taxpayer paid just the regular dole payment of €208 (going up to €220 in January) a week.
Under the plan, the higher rates would be paid for only six months before being pared back gradually to the minimum unemployment benefit rate.
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