The Irish Congress of Trade Unions (ICTU) has issued a response to the Government's publication of a proposed overhaul of the jobseeker’s benefit system which could change the payment structure to make it directly proportional to the recipient’s previous earnings.

The plan would link a person's jobseeker’s payment to their previous earnings and work history and is designed to soften the income shock that a person may face if they suddenly lose their job.

Speaking at the launch of ICTU’s policy position paper, ICTU President and Fórsa General Secretary Kevin Callinan emphasised that income protection for workers is exceptionally weak in Ireland compared to the rest of the EU.

“Despite workers paying pay-related social insurance contributions when in employment, they only receive a flat weekly payment if they lose their job, fall sick, or have a baby. In almost all other 27 member States, workers receive a percentage of their previous pay to protect them against a fall in living standards during short gaps in employment,” he said.

Kevin added that post-pandemic there is now a “heightened public demand to strengthen our frayed social safety net” that cannot and should not be ignored.

Ireland is the only country in the OECD not to require employers to contribute to a worker’s pension and are one of the last of the EU’s 27 member States to make sick pay mandatory.

ICTU General Secretary Owen Reidy raised some areas of concern from the publication but strongly supported the move from a flat-rate to a pay-related benefit payment for workers.

“If done right, this move will bring us in to line with the rest of the EU and allow workers continue to pay their mortgage and other bills while they look for a new job.

“However, ICTU is very concerned some proposals under consideration, if not amended, will disproportionally and significantly weaken the existing income protection of low-wage part-time workers and workers with caring responsibilities, the majority of whom are women.

“The Irish Congress of Trade Unions and our affiliated unions have published a policy paper setting out our position on pay-related benefits and our recommended changes to what is being proposed. We look forward to engaging with Government to get the design of this significant social policy reform right for workers and their families,” he said.

Read “The Social Wage: Pay related benefit for unemployed workers” here.