PRSI system – Total Misnomer

14 Dec 2004

The Irish National Organisation of the Unemployed is disappointed that the Minister for Social and Family Affairs failed to take the opportunity to rescind in full all of the ‘Savage 16’ welfare cuts. In fact only one has been fully rescinded while ten others have been amended slightly and five have remained unchanged.

‘Four of the five unchanged cuts / changes relate to PRSI contributions and access to social insurance payments’, explained Mr Eric Conroy, General Secretary, INOU. ‘These changes will impact negatively on those currently in work who are made redundant and go seek their social insurance payment. These obstacles to obtaining a full rate payment, basically devalues the worth of PRSI contributions’.

The PRSI system is a misnomer – not only is the amount you receive out of the social insurance system no longer pay related but now it is harder to obtain a full rate payment. You have to earn more and be in employment longer to get the full benefit, this seriously impacts on those engaged in part time work and seasonal employment.

Given the additional funds available to the exchequer and the acknowledgement that these changes have and will continue to cause hardship, the INOU calls on the Minister to rescind in full all of the ‘Savage 16’ cuts.