John O'Mahony (Mayo, Fine Gael)
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Question 432: To ask the Minister for Social and Family Affairs the reason PRSI credit is not available to self-employed persons on the same basis as it is to employed persons; and if she will make a statement on the matter. [42746/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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PRSI for self-employed people was introduced in 1988. Class S contributions were then introduced in order to provide cover for a limited range of benefits and pensions for self-employed persons, as follows:

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

Guardian's Payment (Contributory);

State Pension (Contributory);

Maternity Benefit;

Adoptive Benefit, and

Bereavement Grant.

The range of benefits and pensions to which different groups of workers may establish entitlement reflects the risks associated with the nature of their work. This in turn is reflected in the rate of contribution payable. Self-employed persons are liable for PRSI at the Class S rate of 3% and are consequently eligible for a narrower range of benefits than general employees who, together with their employers, pay a total social insurance contribution of 14.05%, excluding levies, under the full-rate PRSI Class A.

Self-employed workers are not insured against short-term benefits such as illness and jobseeker's payments — these are only available to persons covered by PRSI Classes A, E, H and P. Contributors who do not qualify for an insurance-based benefit may establish entitlement to assistance-based payments by satisfying certain conditions — including a means test. Recipients of assistance-based payments, such as Jobseeker's Allowance and Disability Allowance, are awarded 'ordinary employment' credits.

There are no plans to introduce specific credited contributions for self-employed workers. Any such measure would have significant financial implications and would have to be considered within a budgetary context. Consideration would also have to be given to an appropriate increase in the rate of the PRSI Class S contribution.