Written answers

Thursday, 12 February 2015

Department of Social Protection

Social Insurance

Photo of John O'MahonyJohn O'Mahony (Mayo, Fine Gael)
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53. To ask the Minister for Social Protection her plans to allow self-employed persons pay extra voluntary contributions in order that they would be allowed access to social welfare entitlements; and if she will make a statement on the matter. [6485/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Self-employed persons who earn €5,000 or more in a contribution year are liable for PRSI at the class S rate of 4%, subject to a minimum payment of €500, and are entitled to access long-term social insurance benefits such as State pension (contributory) and widow's, widower's or surviving civil partner's pension (contributory) as well as guardians payment (contributory), maternity benefit and adoptive benefit.

If income from self-employment falls below €5,000 in a contribution year or a person is unable to work, he or she may opt to pay voluntary contributions. To become a voluntary contributor a person must:

- have paid at least 468 weeks PRSI (since 6 April 2014) in either employment or self-employment,

- apply within 12 months of the end of the tax year during which he/she last paid compulsory insurance or were last awarded a credited contribution,

- agree to pay voluntary contributions from the start of the contribution week that follows the week in which he/she leaves compulsory insurance.

To become a voluntary contributor on or after 6 April 2015 a person must have previously paid 520 weeks PRSI.

The annual voluntary contribution charge for the self-employed is a special flat rate payment of €500. The payment of voluntary contributions allows the self-employed to maintain their PRSI record and qualify for State pension (contributory), widow’s, widower’s or surviving civil partner’s contributory pension and guardian’s payment (contributory).

In addition self-employed persons who have lost their business and become unemployed or suffer from an illness, may access social welfare supports by establishing eligibility to assistance-based payments such as jobseeker’s allowance and disability allowance. In the case of jobseeker’s allowance they can apply for the means-tested jobseeker’s allowance if their business ceases or if they are on low income as a result of a downturn in demand for their services. As in the case of a non-self-employed claimant for jobseeker’s allowance or disability allowance, the means of husband/wife, civil partner or co-habitant will be taken into account in deciding on entitlement to a payment.

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