Case study 3: How income from work can affect Jobseeker's Allowance
Case study showing how Jobseeker's Allowance is affected by a spouse or partner's income in 2012.
Anna is getting Jobseeker's Allowance and is living with her partner Paul. Paul has been getting Invalidity Pension for a couple of years now. He has been offered some rehabilitative work for three mornings each week. He knows his earnings of €110 from rehabilitative work will not affect his Invalidity Pension. However, Anna wants to know if her Jobseeker's Allowance will be affected if Paul takes up rehabilitative work. Her payment is already reduced because they are living together.
Step 1: Find Anna's current rate of Jobseeker's Allowance (JA)
Maximum payment to Anna and Paul (note 1) €331.60
Paul's rate of Invalidity Pension €193.50
Anna's rate of Jobseeker's Allowance (note 1) €138.10
Total social welfare payments €331.60
Step 2: Find Anna's rate of JA after Paul's income from rehabilitative earnings is taken into account
Anna's current reduced rate of Jobseeker's Allowance €138.10
Less assessable income from Paul's rehabilitative work €15 (note 2)
Anna's new rate of Jobseeker's Allowance €123.10
Note 1
If one of a couple is claiming Jobseeker's Allowance and the other is getting of one of the social welfare payments listed below, the total amount paid to the couple cannot exceed the amount paid to one person and his/her adult dependant.
- Illness Benefit
- Disablement Pension (when paid with Injury Benefit or Incapacity Supplement)
- Injury Benefit
- Invalidity Pension
- State Pension (Non-Contributory)
- State Pension (Contributory)
- State Pension (Transition)
- Jobseeker's Benefit
However, you can choose the higher-rate payment as the primary payment. For example, Anna and Paul have choosen Paul's Invalidity Pension as the primary payment rather than Anna's Jobseeker's Allowance because Invalidity Pension is paid at a higher weekly rate.
Claimant on Invalidity Pension (IP) under 65 years rate €193.50
Qualified Adult rate for IP under 65 years €138.10
Maximum payable to Anna and Paul €331.60
Note 2
Paul's income will affect Anna's rate of Jobseeker's Allowance.
Paul’s income from employment is €110.
€20 per day from casual work (up to a maximum of €60) will be deducted from his average assessable weekly earnings and 60% of the balance will be assessed as his means from employment.
€110 - €60 (3 days worked) = €50 x 60% = €30
Means of €30 is halved because Paul is getting a social welfare payment.
Total weekly means = €15
The following allowances are always deducted from your gross earnings to get your assessable earnings.
- PRSI contributions
- Union dues
- Superannuation
- PRSA (Personal Retirement Savings Account)
- AVCs (Additional Voluntary Contributions).
Language
Related Documents
- Means test for Jobseeker's Allowance
To get Jobseeker's Allowance you must satisfy a means test. A means test examines all your sources of income. However, some income is not taken into account in the calculation of your means. - Invalidity Pension
Invalidity Pension is a social insurance payment that may be paid to people in Ireland who are incapable of work and getting Illness Benefit for at least twelve months immediately before the date of their claim. - Budget 2012
Budget 2012 was announced on 5 and 6 December 2011. Summary of the main changes.
Contact Us
If you have a question relating to this topic you can contact the Citizens Information Phone Service on 0761 07 4000 (Monday to Friday, 9am to 9pm) or you can visit your local Citizens Information Centre.