Written answers

Tuesday, 24 June 2014

Department of Social Protection

Social Insurance Rates

Photo of Tony McLoughlinTony McLoughlin (Sligo-North Leitrim, Fine Gael)
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258. To ask the Minister for Social Protection if she has given consideration to changing the rate of PRSI for persons working as part of a Tús programme and earning in excess of €352 per week; if she considers this rate excessive in view of the fact that such workers only earn €20 in excess of their social welfare income and work for 19.5 hours per week; and if she will make a statement on the matter. [26894/14]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Tús is a community work placement initiative, established in 2011, that provides short-term part-time working opportunities for unemployed people. The income received by participants in employment schemes such as Tús, Community Employment Scheme, Rural Social Scheme and Gateway is treated as income from employment for PRSI purposes and, in the same manner as other workers, is subject to Class A PRSI. This provides the participants on these schemes with access to the benefit of full insurability, including future entitlement to short-term benefits such as illness and jobseekers benefits and contributes towards establishing entitlement to pensions.

Participants on Tús and other employment schemes receive a standard weekly rate of payment which is equivalent to the social welfare payment appropriate to their family size plus a top up of €20 subject to a minimum of €208 per week. Employees, including participants on Tús and the other employment schemes, with income below €352 per week do not pay PRSI. Where income exceeds €352, employees, including participants on Tús and the other employment schemes, pay Class A PRSI at 4% on all income.

Any proposal to change the rate of PRSI for persons working as part of any of the employment schemes including the Tús programme and earning in excess of €352 per week, would impact on their entitlements to social insurance benefits.

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