Link maternity, paternity, parental and sick pay to employee’s previous wage along with jobseeker payment, urges Ictu

The Irish Congress of Trade Unions (Ictu) has said government should consider directly linking several benefits with an employee’s earnings, and not just jobseeker payments. If adopted, the proposal would lead to much higher payments for thousands.

The submission warns that a typical worker losing their job in Ireland sees their income “fall off a cliff”.

It said  income protection here is weak compared to other rich countries.

The Department of Social Protection sought submissions on a draft scheme to roll out a pay-related jobseeker’s payment.

Ictu’s submission said   there is a strong case for extending pay-related payments to other short-term income supports such as maternity, paternity, parental and illness benefits.

“Ireland is one of only two of the EU’s 27 member states to pay maternity benefit at a flat amount (€262 a week).”

It said leaving it to employers to pick up the cost of topping up maternity benefit risks negatively influencing hiring decisions and widening the gender employment and pay gaps.

The report noted  that only half of eligible fathers in the private sector have availed of paternity benefit of €262 a week and mothers are twice as likely to avail of parental benefit, which is paid at the same rate.

It claimed “inadequate” illness benefit of €220 a week pushes workers into returning to work too soon and risks causing a relapse, workplace accident and spreading infection.

The report said  jobseeker benefit of €220 a week replaces just 25pc of average earnings, or 49pc of a full-time minimum wage.

Similar benefits in Belgium replace 91pc of a worker’s wage, 79pc in Denmark and 69pc in the Netherlands ,

“The pandemic brought the deficiencies in our income protections for workers unable to work into sharp focus and heightened demand for a bigger role for government in protecting people’s living standards against common risks,” the report  said.