Oireachtas Joint and Select Committees

Wednesday, 26 March 2014

Joint Oireachtas Committee on Education and Social Protection

Social Welfare Entitlements for Self-Employed: ISME, SEA and SFA

2:00 pm

Photo of Joanna TuffyJoanna Tuffy (Dublin Mid West, Labour) | Oireachtas source

Employees and employers do not get an opt-in, opt-out option in regard to the paying of PRSI for the benefits the employees get, as it is compulsory for employees and their employers. The current situation is that there is a shortfall in the PRSI pot which is then subsidised by general taxation. This goes for everybody but if this was to be done for the self-employed, it would be subsidised out of the general taxation pot, so it is not like nobody is going to pay for it. It is not even that the Government is paying for it as it is the taxpayer who pays. That is an important point. Mr. Martin said the contribution was 7% in the UK.

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