Means test for Jobseeker's Allowance
Introduction
To qualify Jobseeker’s Allowance (JA) you must satisfy a mean test. In a means test the Department of Social Protection examines all your sources of income to test if they fall below a certain level. If they fall below that level you will get Jobseeker’s Allowance. The amount of Jobseeker’s Allowance you will get depends on your level of income.
In the means test for Jobseeker’s Allowance your household income is assessed. If you are married, in a civil partnership or cohabitating, the means of your spouse, civil partner or cohabitant are also taken into account. Sometimes a certain amount of income or income from particular sources is not taken into account. Income not taken into account is often referred to as income disregards.
The means test for Jobseeker’s Allowance can be a complex calculation. Here we look at some of the general items that are taken into account in the means test.
The means test examines the following types of income:
- Cash income (including income from work)
- Property personally used
- Capital (savings and investments) and property not personally used
- Benefit and privilege from living with your parents.
Cash income
The means test assesses all cash income that you expect to get in the forthcoming year. If it is not possible to estimate your income over the next 12 months, it is usually based on the income you actually received in the previous year.
Among the cash income that is assessed is:
- Income from self-employment
- Income from employment
- Farm income
- Income from a social security pension from another country
- Income from maintenance, for example, if you are separated.
Most social welfare payments and Health Service Executive payments are not taken into account. Find out more about cash income not included in the means test.
Property personally used
The house in which you live is not included in the assessment of your means unless you are getting an income from it. If you have rented a room in the house, that income is assessed but the capital value of your home is not.
Capital and property not personally used
Capital includes property (not your home), savings and investments.
If you own property (excluding your home) or you have investments or any other form of capital, the value is assessed, using a standard formula (see below) whether or not you are getting an income from the property or investment. If property is rented you will not be assessed on the actual income from the letting. Any outstanding mortgage registered against the property is deducted from the market value to find the capital value.
The property and investments that may be assessed include savings in a bank account (or anywhere else), a house that you have let and stocks and shares. If you or your spouse, civil partner or cohabitant saves a portion of your social welfare payment each week, these savings as well as savings from most other sources will be taken into account as part of your means.
The formula for assessing the value of capital including property (but not your own home), savings and investments is as follows:
| Capital | Weekly means assessed |
| First €20,000 | Nil |
| Next €10,000 | €1 per €1,000 |
| Next €10,000 | €2 per €1,000 |
| Balance (€40,000 +) | €4 per €1,000 |
If you have a joint account with your spouse, civil partner or cohabitant, legally the total amount in the account is owned by each of you. Therefore it can be assessed in full against each of you. However, if you are both getting means-tested payments it will be assessed on a shared basis or against only one of you.
| For example |
If you have €55,000 savings: The first €20,000 is assessed as nil, €20,000 to €30,000 is assessed as €10, €30,000 to €40,000 is assessed as €20, €40,000 and €55,000 is assessed as €60. €10 + €20 + €60 = €90 Savings of €55,000 gives a means of €90 per week. |
Living with your parents
If you are 24 years of age or under and you are living with a parent or a step-parent in the family home, some of your parents' income will also be taken into account in the assessment for Jobseeker's Allowance.
This is called an assessment of the benefit and privilege you get from living with your parents. More information is available on how benefit and privilege is assessed in the means test.
Total means
To find your total means, your means under the various headings (for example, cash income, employment, capital, benefit and privilege) are added together. If you are married, in a civil partnership or cohabiting your means may be halved - see ‘Couples’ below.
Your total household means is then deducted from the maximum payment for your situation (see below) to find the actual amount of Jobseeker’s Allowance you are entitled to.
Maximum payment for your situation
The maximum payment for your situation is the maximum personal rate of Jobseeker's Allowance including any increases for adult and child dependants. However, if you are married, in a civil partnership or cohabiting and your spouse, civil partner or cohabitant is getting a social welfare payment in their own right, your means are halved and the maximum payment for your situation will not include an increase for an adult dependant and will only include half-rate increases for your child dependants (see 'Couples' below).
Your age can also determine the maximum payment for your situation. More information on the JA rate for people under 25 can be found in our document on Jobseeker's Allowance.
Couples
If your spouse, civil partner or cohabitant has a social welfare payment in their own right (except Child Benefit, Disablement Pension, guardian's payments, Supplementary Welfare Allowance, Domiciliary Care Allowance and half-rate Carer's Allowance) or is on a FAS or VTOS course and getting a payment in their own right you cannot claim an Increase for a Qualified Adult for them.
This means that the maximum you can be paid is the maximum Jobseeker’s Allowance payment for a single person plus a half-rate allowance for each qualified child. (Your spouse, civil partner or cohabitant will get a half-rate payment for each qualified child with their payment.)
In addition only 50% of your combined means are taken into account in the means test for your Jobseeker’s Allowance - in other words your combined means are halved.
However, if you are claiming Jobseeker's Allowance and your spouse, civil partner or cohabitant is getting of one of the social welfare payments listed below, the total amount paid to you as a couple cannot exceed the maximum amount paid to one person (including adult and child dependants) on one social welfare payment.
- Illness Benefit
- Disablement Pension (when paid with Illness Benefit or Incapacity Supplement)
- Injury Benefit
- Invalidity Pension
- State Pension (Non-Contributory)
- State Pension (Contributory)
- State Pension (Transition)
- Jobseeker's Benefit
- Jobseeker's Allowance
- Pre-Retirement Allowance (PRETA)
- Farm Assist (FA)
| Example for 2011 |
Paul is 36 and qualifies for Jobseeker’s Allowance. His partner Anna is getting Invalidity Pension. Anna and Paul have chosen Anna's Invalidity Pension as the primary payment rather than Paul's Jobseeker's Allowance because Invalidity Pension is paid at a higher weekly rate. Claimant on Invalidity Pension (IP) under 65 years €193.50 Paul will get Jobseeker’s Allowance of €138.10 |
Additional information
You can also find more information in the Department of Social Protection’s Operational Guidelines about:
Language
Useful Resources
Related Documents
- Means test
To qualify for a social assistance payment 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. - Widow's, Widower's or Surviving Civil Partner’s (Non-Contributory)
Pension
This document describes the Widow's, Widower's or Surviving Civil Partner’s Non-Contributory Pension (formerly Widow's/Widower's (Non-Contributory) Pension) which is payable to widowed people or surviving civil partners who do not qualify for a contributory pension and who pass a means test. - Claiming for an adult dependant
You can get an increase in your social welfare payment for your adult dependant. This document explains who qualifies as an adult dependant.
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.