Robert Dowds (Dublin Mid West, Labour)
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Question 104: To ask the Minister for Social Protection the entitlement of unemployed, formerly self-employed persons to sign on the live register for credits if they have been paying PRSI at the S rate. [7170/12]

Joan Burton (Dublin West, Labour)
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Self-employed persons 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). A total of 14.75% PRSI is payable in respect of ordinary employees under PRSI Class A and provides access to the full range of social insurance benefits. (4% is paid by employees and 10.75% by their employers where weekly earnings are €356 or more. For employees earning less than €356 per week, the rate of employer's PRSI is 4.25%.)

PRSI credited contributions are an integral part of the social insurance system. For the most part they are linked to employees having an underlying entitlement to a social welfare payment while temporarily detached from the labour force or having entitlement to statutory leave. The primary purpose of PRSI credits is to secure social insurance welfare benefits of employees by covering gaps in insurance where they are not in a position to pay PRSI such as during periods of unemployment, illness, etc. The class at which a contributor paid his or her last PRSI contribution determines entitlement to credited contributions.

PRSI credits are awarded in respect of employees provided they have an underlying entitlement to a social welfare payment while temporarily detached from the labour force. Credits are not awarded in respect of formerly self-employed persons who had been paying PRSI at the Class S rate. Self-employed individuals who wish to preserve the continuity of their social insurance record for pension purposes, do have the opportunity to do so by becoming a voluntary contributor.