Michael McGrath (Cork South Central, Fianna Fail)
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To ask the Minister for Social Protection if she will clarify the entitlement of a person genuinely employed by their spouse to pay Class A PRSI; and if she will make a statement on the matter. [38391/12]

Joan Burton (Dublin West, Labour)
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Under social welfare legislation, the social insurance status of spouses working in a family business can vary. Spouses and relatives who are engaged in a business partnership are treated as individual self-employed contributors who are liable to social insurance contributions. These contributions enable them to build up an insurance record in their own right and receive accruing benefits.

Alternatively, where a family business is incorporated as a limited company, spouses and assisting relatives involved in the business pay PRSI contributions either as employees or as self-employed contributors depending on whether a contract of service exists.

Exceptions to this general rule apply in the case of certain 'Family Employment'. This term is used to describe a situation in which a self-employed sole trader/businessperson either employs, or is assisted in the running of the business, by a spouse or by other family member(s). The exceptions apply to both men and women in family employments and recognise the practical difficulties in establishing the existence of a genuine employment relationship in such circumstances.

Where formal employment relationships are intended between spouses or assisting relatives, the legislation provides the scope necessary to allow parties enter into formal arrangements for a contract of employment or self-employment whereby PRSI contributions will be payable.