Róisín Shortall (Dublin North West, Labour)
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Question 267: To ask the Minister for Social Protection, further to Parliamentary Question No 1322 of 29 September 2010, if a self-employed person will be included in the auto-enrolment scheme and if so the total level of contributions they will be required to pay. [35192/10]

Éamon Ó Cuív (Galway West, Fianna Fail)
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The introduction of a new auto-enrolment scheme is a key element of the National Pensions Framework. Employees aged 22 or over, who earn above a certain income threshold will be automatically enrolled into this new scheme, unless they are already in a more favourable occupational pension scheme. Self-employed people will not be enrolled into the scheme.

For those employees who are included in the scheme, contributions will only be paid on earnings above a certain minimum level and below a certain maximum. The level of these thresholds will be decided closer to the implementation date and they will be set in such a way as to ensure that the scheme focuses on those on low and middle incomes. Within these thresholds, the employee will pay 4% of their salary and the employer will be required to pay a contribution of 2%. The State will also provide a contribution within these thresholds which will be equivalent to 33% tax relief. Where a self-employed person employs people who are enrolled into the new scheme he or she will be required to pay the employer contribution of 2% within the upper and lower earnings thresholds, in respect of each such employee.

An implementation group was established in May to develop the legislative, regulatory and administrative infrastructure required to put the reforms into operation. The implementation phase is expected to take three to five years. It is intended that the auto-enrolment scheme will be introduced in 2014 but only if it would be prudent given the economic conditions prevailing at that time.