Peter Mathews (Dublin South, Fine Gael)
Link to this: Individually | In context

Question 261: To ask the Minister for Social Protection her plans to ensure that the self-employed are permitted to claim jobseeker's benefit, as these people are essential to generate job creation and should be eligible for help from the State; and if she will make a statement on the matter. [20828/11]

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

Ordinary employees who have access to the full range of social welfare benefits, including jobseeker's benefit, pay Class A PRSI at the rate of 4%. In addition their employers also make a PRSI contribution of 10.75% in respect of their employees, resulting in the payment of a combined 14.75% rate per employee under full-rate PRSI Class A (for employees earning less that €356, the rate of employer's PRSI is 4.25%).

Self-employed workers are liable for PRSI at the Class S rate of 4% which entitles them to access long-term benefits such as State pension (contributory) and widow's, widower's or surviving civil partner's pension (contributory). Any proposal to extend short term benefits such as jobseeker's benefit to the self-employed would have significant financial implications and would have to be considered in the context of a much more significant rise in the rate of contribution payable.

PRSI coverage is related to the risks associated with employment or self-employment, the annualised system of contributions for self-employed people and the practicalities of administering and controlling access to short-term payment for self-employed people. A system of separate arrangements for employed and self-employed workers within a social insurance context is common in other European social protection systems.

Self-employed workers may establish eligibility to assistance-based payments such as jobseeker's allowance. They can apply for the means-tested jobseeker's allowance if their business ceases or if they are on low income as a result of a downturn in demand for their services. In general their means will take account of the level of earnings in the last twelve months in determining their expected income for the following year. In the current climate account is taken of the downward trend in the economy.