Regina Doherty (Meath East, Fine Gael) | Oireachtas source

PRSI credited contributions, or credits, are only awarded to former employees to cover gaps in social insurance where they were not in a position to pay PRSI contributions. This would be, for example, during periods of unemployment or illness. Self-employed workers do not qualify for credits. The farm assist scheme was introduced in 1999 to provide income support for low-income farmers. It replaced the former smallholder's unemployment assistance payment. In line with the then-existing arrangements for unemployment assistance, including smallholder's unemployment assistance, and pre-retirement allowance, the non-welfare income of farm assist recipients was exempt from the payment of class S PRSI for self-employed workers. Recipients of farm assist who had previously paid class S social insurance contributions had the option of paying voluntary contributions to maintain their social insurance record, provided they satisfied the qualifying conditions to do so.

Since 1 January 2007, the exemption from class S PRSI has been removed and those self-employed persons receiving jobseeker’s allowance or farm assist are subject to class S PRSI as self-employed contributors on their self-employed income, provided they have an annual income is €5,000 or more. Any self-employed person, including farmers, with an annual income less than €5,000 can pay voluntary contributions to maintain their social insurance record for pensions purposes once he or she qualifies to do so. A person aged 66 or over with insufficient PRSI contributions to qualify for a full rate contributory State pension may claim a non-contributory State pension if they have an income need. The maximum weekly personal rate is €237, which is over 95% of the maximum contributory State pension rate. While it is means tested, there are significant disregards which benefit claimants and a significant majority of such pensioners are paid at the full rate.

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