Patrick O'Donovan (Limerick, Fine Gael)
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Question 303: To ask the Minister for Social Protection her plans to make adjustments to the PRSI system to allow the self-employed to make a greater contribution and reap a greater benefit when the need arises; and if she will make a statement on the matter. [30777/12]

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). 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 or social insurance illness benefits, 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. I established the Advisory Group on Tax and Social Welfare last year to meet the commitment made in the Programme for Government. The Advisory Group will, inter alia, 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 examines this matter and I will be examining this in detail.