Workers who lose their jobs will receive pay-related benefits for up to nine months after becoming unemployed, according to a plan that will be presented to the Cabinet tomorrow.
Heather Humphreys, Minister for Social Protection, has proposed a graduated increase in payments.
"We have one flat rate at the minute of €220, what I'm proposing is if you found yourself unemployed that you would get a payment that is commensurate with the length of time you have been working," she went on to say.
Ms Humphreys stated that there have been a number of recent redundancies in which workers were earning €800 or €900 per week and were suddenly reduced to €220.
She described her proposal as a "fairer system in which people who have paid their entire lives and worked their entire lives would receive an enhanced benefit."
Ms Humphreys stated that new legislation would be required.
The move, according to Laura Bambrick, Head of Social Policy and Employment Affairs at the Irish Congress of Trade Unions, will bring the Irish welfare system more in line with the rest of the EU.
Ireland is now one of only four countries with a flat rate for job seekers' benefits.
According to the new proposals, job seekers who lose their jobs will receive at least 60% of their previous earnings up to a cap of €450 for the first three months, 55% of their previous earnings for the next three months, with a maximum payment of €375.
Those who have been out of work for nine months will be paid 50% of their previous earnings, up to a maximum of €300.
Ms Bambrick stated that 70% of all workers will return to work within six months, with half returning within three months.
According to her, a recent regulation on sick pay requires employers to pay their own employees 70% of take-home pay up to €550.
She stated that the issue is that this will not be the case for those who lose their jobs, and that the higher rate should be in place for at least six months.
"We would like to see that standardized across sick pay and the unemployment or job seekers benefit," she went on to say.
Separately, Ms Humphreys stated that she will present the Social Welfare Bill to Cabinet tomorrow, which will include the €12 increase in social welfare payments beginning on January 1.
Source: RTE