Written answers

Tuesday, 3 July 2007

Department of Social and Family Affairs

Tax and Social Welfare Codes

9:00 pm

Photo of Ned O'KeeffeNed O'Keeffe (Cork East, Fianna Fail)
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Question 338: To ask the Minister for Social and Family Affairs his proposals to amend the self-employed PRSI contribution scheme in view of the concerns raised by self employed people who can not obtain illness benefit (details supplied). [18883/07]

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.

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