Budget Perspectives

Earnings-related benefits in Ireland: rationale, costs and work incentives

This paper has been peer reviewed prior to publication. The authors are solely responsible for the content and the views expressed.

June 10, 2022
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Ireland is an outlier among EU countries as it does not have a strong link between previous earnings and the level of payment provided to those who have recently lost their job or are on leave from work for the short- to medium-term for reasons of illness or maternity. This paper provides a historical background for earnings-related benefits in Ireland, outlines the rationale behind linking benefits with previous earnings and examines the potential impact of (re)instating them.