Temporarily unemployed and PRSI

Potential-Monke

Hey all. Probably a simple question, but the terrible Google is no help to me with its suggestions to what I may have meant to ask, instead of just searching exactly what I looked for. Anyway, I'm 42, employed all my life eith maybe a break of a few weeks here and there in total between jobs. Recently made redundant, but don't intend to be unemployed for long, however the redundancy payment is giving me a bit of wiggle room so I don't need to jump at the next available job.

I'm technically homeless, but have been for nearly 10 years. I'm "sleeping on a couch" for most of it, mainly because my simple presence would result in a net household loss for my widowed mother, and also because its impossible for a single male to be able to rent their own place these days. She wants me to sign on, but I'm reluctant to bring them around the place. She says my "stamps" will be affected.

So I went down a rabbit hole of trying to understand the irish taxation system. I failed. Will not being employed prevent me from things well in the future? As I said, I intend to be employed again within a month hopefully, so I think its madness to sign off for that little bit of time. But if it somehow affects me at retirement I'd be tempted. Surely a few months between jobs in total over my life wouldn't have a negative effect, considering the thousands I've paid over the years, mostly well above the min rate and for the last 20ish years some dipping into the higher rate of tax (if applicable).

Citizens information site says I should to ensure I keep yp credited contributions and that just confused the feck out of me, as one doesn't pay PRSI unless you earn a certain amount, but if you're earning nothing you do need payments made?! Confused.com. I've never signed on, I believe that should be kept for when it's actually needed (something not everyone apparently believes).

ELM327

Your stamps will be affected, if you're not working and not signing on you're not building your stamps.

You have to sign on.

Mrs OBumble

Sign on. You don't know what the future holds, you might get injured and need the stamps.

Give them your mothers address. You have 9 months entitlement to Jobseekers Benefit before they look at means tested stuff

Potential-Monke

Right, I'll chance it so. Still don't understand how a short break after decades of work could affect it though. Don't think I ever will tbh! Cheers for the info!

herbalplants

It is your right to sign on after years of working! As others said above, you will get about 9 month social (not means tested)

appledrop

Yep just sign on, it's not means tested for 9mths and gives you a basic income for a while so you don't have to dip into your redundancy money while you look for another job.

gipi

If you sign on, you may be disqualified for a number of weeks because of the redundancy payment (if you're under 55). For each week you sign, you receive a credited prsi contribution.

A few weeks of a gap in your overall prsi record might not seem like much now, but it might be important at pension age (especially if you have more breaks in the future).

phormium

It affects it because the number of prsi contributions you have affects the pension you get, now rules are changing etc and a few months may not matter but why take the chance! While you are signing on and drawing your prsi you get a credited 'stamp'/contribution so it doesn't break your record.

This is nothing really to do with tax as such, it's prsi social welfare system , what tax you pay doesn't determine your future pension, well not at the moment anyway unless they change anything else!

Your mother is right, sign on.