Joan Burton (Dublin West, Labour) | Oireachtas source

Self-employed people are liable for PRSI at the class S rate of 4%. This entitles them to access valuable long-term benefits, including benefits such as the contributory State pension and widow's, widower's and surviving civil partner's contributory pension, as well as maternity benefit. The advisory group on tax and social welfare found the current system of means-tested jobseeker's allowance payments adequately provides cover to self-employed people for the risks associated with unemployment. The group was not convinced there was a need for the extension of social insurance for the self-employed to provide cover for jobseeker’s benefit.

The group also found that extending social insurance for the self-employed was warranted in cases related to long-term sickness or injuries. To this end, the group recommended that class S benefits should be extended to provide cover for people who are permanently incapable of work because of a long-term illness or incapacity through the invalidity pension and the partial capacity benefit schemes. In this regard the group recommended that the rate of contribution for class S should be increased by at least 1.5 percentage points, payable on a compulsory basis. This recommendation will require further consideration in conjunction with the findings of the most recent actuarial review of the Social Insurance Fund, which indicated that the self-employed achieve better value for money compared with employed workers.

If we are to extend the benefits, we would have to have an additional contribution. The Deputy is probably aware that in the legislation, which was passed recently by the House, we extended the right to insurance to the spouses and partners of people who are self-employed. I estimate that will benefit an additional 5,000 to 6,000 people, many probably coming from the farming community.

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