Joan Burton (Dublin West, Labour)
Link to this: Individually | In context

Question 778: To ask the Minister for Social and Family Affairs the regulations in regard to the changes in maternity benefit announced in budget 2006; his views on applying the new arrangements from the date of the budget or from 1 January 2006; and if he will make a statement on the matter. [1217/06]

Catherine Murphy (Kildare North, Independent)
Link to this: Individually | In context

Question 779: To ask the Minister for Social and Family Affairs his views on amending the regulations set out by him in budget 2006 to allow women who will commence their maternity leave prior to 1 March 2006 and who will still be on maternity leave as of 1 March 2006 to avail of the extended paid and unpaid maternity leave provisions; and if he will make a statement on the matter. [2470/06]

Catherine Murphy (Kildare North, Independent)
Link to this: Individually | In context

Question 780: To ask the Minister for Social and Family Affairs the reason women who commence their maternity leave prior to 1 March 2006 but who will still be on maternity leave subsequent to 1 March 2006 cannot avail of the extended maternity leave entitlements announced in budget 2006; and if he will make a statement on the matter. [2471/06]

Paul Gogarty (Dublin Mid West, Green Party)
Link to this: Individually | In context

Question 785: To ask the Minister for Social and Family Affairs the arrangements in place to ensure persons taking maternity leave under the new increase in reckonable weekly earnings as of 1 January 2006 will benefit from the amendments to the Social Welfare Bill 2005 on the extension of paid maternity leave by four weeks, which is due to take effect in March 2006; if transitionary arrangements have been put in place; and if he will make a statement on the matter. [40285/05]

Joan Burton (Dublin West, Labour)
Link to this: Individually | In context

Question 793: To ask the Minister for Social and Family Affairs the regulations in regard to the changes in maternity benefit announced in budget 2006; his views on applying the new arrangements from the date of the budget or from 1 January 2006; the cost of providing the added benefits from this earlier date; the number of persons who would be affected by it; and if he will make a statement on the matter. [1218/06]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 778, 779, 780, 785 and 793 together. My Department pays maternity benefit to women who have accumulated the required number of PRSI contributions on their social insurance record and who are on maternity leave from work. Entitlement to maternity benefit for employees is contingent on entitlement to maternity leave, legislation for which is the responsibility of my colleague, the Minister for Justice, Equality and Law Reform.

Budget 2006 brought forward a considerable improvement in the rate of payment for women in receipt of maternity benefit during 2006. With effect from 2 January of this year, and in accordance with commitments made by the Government during the mid-term review of Sustaining Progress, the rate at which the level of maternity benefit is assessed as a proportion of reckonable earnings is increased from 75% to 80%. This measure will benefit most women in receipt of maternity benefit from that date onwards. Only those women who remain on the minimum payment rate will not gain from this measure, although they will still benefit from the €17 increase in the minimum rate.

The weekly rate of maternity benefit is calculated by dividing the gross reckonable earnings in the relevant income tax year by the number of weeks worked in that year, subject to a maximum of €332.00 per week. Some 80% of reckonable earnings will be payable subject to a minimum payment of €182.60 and a maximum rate of €265.60. The minimum and maximum rate for 2005, based on 75% of reckonable earnings, stood at €165.60 and €249.00, respectively. This year's increase in the percentage level of reckonable earnings is projected to cost €8.2 million during 2006 and will impact upon some 9,900 women.

Budget 2006 also provided for core maternity leave — and, thus, maternity benefit payments — to be extended from 18 to 22 weeks. These additional four weeks of maternity leave will be effective from 1 March 2006, for all paid and unpaid leave commencing on or after that date. A further four weeks of unpaid maternity leave will also be available to all women who commence their paid or unpaid leave on or after 1 March 2006. Employees are legally required to give four weeks' notice to the employer of the intention to take up their leave entitlement.

Based on current averages of both the number of recipients and the rate of payment, the increase in the duration of maternity benefit will assist some 10,800 women each week. Some €35 million has been allocated in budget 2006 for the implementation of this measure. Of this, €27 million will come from the social insurance fund, reflecting the fact that women will be claiming maternity benefit for longer periods, and the remaining €8 million will be met from the Exchequer to cover the expected payroll costs of public servants who do not pay the full PRSI contribution rate. The full-year cost of the 2006 extension will be €42.5 million, of which €32 million will be drawn from the social insurance fund.

There will be a further four-week extension to both paid and unpaid maternity leave in 2007, bringing the total period of paid maternity leave to 26 weeks and that of unpaid maternity leave to 16 weeks. Taken together, the full-year cost of the 2006 and 2007 extensions will be €85 million, of which €64 million will come from the social insurance fund. These extensions will be given effect in two separate pieces of legislation — the Social Welfare Reform and Pensions Act 2006 and by order of the Minister for Justice, Equality and Law Reform under the relevant provisions of existing maternity protection legislation, which is expected to be in place in February.

The revised arrangements with regard to the duration of maternity leave and benefit will take effect from the earliest possible date, which is 1 March 2006, rather than 1 January. Those who commence their paid leave on or after 1 March 2006 will be entitled to the additional four weeks of paid leave. Furthermore, those who commence their unpaid leave on or after 1 March 2006 will be entitled to the additional four weeks of unpaid leave, even if they were not entitled to the extended paid leave period. Similar arrangements are being put in place to provide for payment of adoptive benefit for the increased duration of statutory adoptive leave.

With any initiative of this nature, a specific introduction date means it is inevitable that a number of individuals will miss out on eligibility. This commencement date is driven by the need to make the necessary legislative and operational adjustments and the legal requirement for employers to receive the required statutory notification of maternity leave from employees. It is estimated that the cost of implementing the increased duration of maternity leave and consequent entitlement to maternity benefit from 1 January 2006 would have been in the region of €6 million.