Written answers

Tuesday, 26 June 2007

Department of Social and Family Affairs

Social Insurance

10:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 394: To ask the Minister for Social and Family Affairs if a person (details supplied) in County Kildare can pay PRSI health contributions; and if he will make a statement on the matter. [16543/07]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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Self employed (Class S) contributors are entitled to the following payments:

Widow's/Widower's (Contributory) Pension;

Orphan's (Contributory) Allowance;

Old Age (Contributory) Pension;

Maternity Benefit;

Adoptive Benefit, and

Bereavement Grant.

When Class S was introduced for self-employed persons in 1988, coverage for both short-term insurance-based payments such as disability benefit and for illness was excluded on the grounds that it would prove too administratively/legally complex and costly to implement. The range of benefits to which different groups of workers may establish entitlement reflects the risks associated with the nature of their work and this is in turn reflected in the rate of contributions payable. Self-employed individuals pay Class S contributions at a rate of 3% and are eligible for a narrower range of benefits than employees who, together with their employers, are liable for a total contribution of 14.05% under PRSI Class A. Self-employed workers who do not qualify for an insurance-based benefit may claim supplementary welfare allowance, which is subject to a means test.

PRSI contributions comprise a social insurance portion and a health contribution. The health contribution goes towards the funding of public health services and does not become part of the Social Insurance Fund which finances social insurance payments. Entitlement to health services in Ireland is not related to these contributions but is primarily based on residency and means. If the Deputy has any further queries in relation to this case, he is invited to contact officials from my Department.

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