Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Question 139: To ask the Minister for Social Protection if she will estimate the cost to her Department in a full year of extending the right to short term welfare benefits, such as jobseeker's benefit and illness benefit, to persons who pay class S pay-related social insurance; if she has considered such a proposal; and if she will make a statement on the matter. [12080/12]

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

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). Ordinary employees who have access to the full range of social insurance benefits pay Class A PRSI at the rate of 4%. In addition, their employers 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 than €356 per week, the rate of employer's PRSI is 4.25%).

Any changes to the PRSI system to extend the full range of social insurance benefits, including jobseeker's benefit and illness benefit, to self-employed persons 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.

It is not possible at this stage to estimate the cost in a full year of extending the right to short term welfare benefits to the self-employed. I have, however, established the Advisory Group on Tax and Social Welfare last year in line with the commitment made in the Programme for Government. The Advisory Group has been requested, inter alia, to examine and report on issues involved in providing social insurance cover for self-employed persons in order to establish whether or not such cover is technically feasible and financially sustainable. In addition, the Actuarial Review of the Social Insurance Fund, which is due to be completed in mid-2012, will also examine this matter.

Questions Nos. 140 and 141 withdrawn.