Séamus Brennan (Dublin South, Fianna Fail)

A total of 1,416 PRSI exemption certificates have been issued to Gama since 2002. The certificates were granted under regulations which provide for exemptions from PRSI contributions for up to 52 weeks per year to be granted to employees not ordinarily resident in the State but who are temporarily employed here. The purpose of the legislation is to enable workers sent by their employers to work for temporary periods in another country to remain subject to social insurance in their own country. Similar arrangements apply under EU legislation to workers moving within the EU and to workers covered by bilateral social security agreements with Ireland.

When a request for an exemption certificate is processed, a signed declaration is obtained from an employer to confirm that the person for whom the certificate is being sought has been retained in the social insurance regime of his or her home country while working in Ireland. The procedure is intended to confirm that an employee has been posted and is covered for social insurance in his or her home country while covered by an exemption certificate in Ireland. In randomly selected cases, independent confirmation is sought from the authorities in an employee's home country that social insurance payments have been made during the period covered by an exemption certificate. This control complements an employer's declaration that an employee has been retained in insurance cover in his or her own country.

In the case of Gama, a random sample of exempted cases has been referred to the relevant overseas authorities via the Department of Foreign Affairs to confirm that the employees involved have been retained in their home country's social security regime during the period of the exemption. Efforts continue to confirm the status of the workers in question. Granting of an exemption certificate is linked to the existence of a valid work permit which confirms that the employee is not ordinarily resident in the State and is entitled to work here.

The value of exemptions to Gama cannot be quantified by my Department. Information on the wages of workers for whom exemption certificates are sought is not a requirement of the application process. It is, therefore, not possible to calculate the amount of PRSI which would arise if the exemptions had not been applicable. The workers in question remain subject to social insurance in their home countries during the period covered by the exemption certificates.

The needs of the Irish economy have changed significantly since exemption legislation was originally enacted. There have been significant changes in working patterns and skill levels while the enlargement of the European Union has also affected the labour market. Against this background and having regard to the circumstances of the matter in question, I have commissioned a review of the policy and legislative provisions on exemption certificates of my Department. I will bring forward any necessary measures to change the current arrangements in light of the review.

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