Alan Farrell (Dublin North, Fine Gael)
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152. To ask the Minister for Social Protection her plans to rectify the situation whereby persons who are subject to class K pay-related social insurance at the 4% rate or to class S are not entitled to certain social welfare payments when unemployed; her further plans to ensure those whose pay-related social insurance contributions do not entitle them to social insurance benefits and payments are, in future, made fully aware of the option of making voluntary contributions; and if she will make a statement on the matter. [11332/15]

Joan Burton (Dublin West, Labour)
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Generally persons between 16 years and under pensionable age are liable to PRSI on all of their different forms of income.

From 1 January 2011 class K PRSI applies to the income derived from the holding of a public office for certain public office holders provided that the income exceeds €5,200 a year (€100 a week). This was introduced as a measure of solidarity with other workers. Those whose income is less than €100 per week do not pay PRSI and return their income under PRSI class M. All public office holders are liable to pay the contribution regardless of age.

All workers pay PRSI on their earnings from employment or self-employment. In the case of individuals who have more than one income source, PRSI is generally paid on all forms of income.

Up to 2013 certain exemptions applied to specific groups. The removal of the exemption in relation to modified rate contributors with income from a trade or profession was introduced in the Social Welfare and Pensions (Miscellaneous Provisions) Act 2013 and the removal of the exemption in respect of employed contributors and occupational pensioners under age 66 years whose only additional income is unearned income was introduced in the Social Welfare and Pensions Act 2013.

This means that, with effect from 1 January 2014, unearned income such as rental income, investment income, dividends and interest on deposits and savings of the individuals who were previously exempt, is liable to PRSI at 4% provided the person is a chargeable person in accordance with the Revenue definition.

A chargeable person does not include a PAYE taxpayer (i) who does not have other income or (ii) who has an element of other insignificant income that is fully taxed through the Office of the Revenue Commissioners PAYE system (Revenue regard amounts not exceeding €3,174 as insignificant). Individuals with income exceeding €3,174 must pay and file under Revenue's self-assessing system.

This income is chargeable at the class K PRSI rate of 4%. This PRSI charge does not give rise to any additional social insurance benefits. Individuals may however qualify separately for social insurance entitlements based on PRSI paid on other sources of income i.e. PRSI paid on income from their employment.

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) as well as guardians payment (contributory), maternity benefit and adoptive benefit. 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 8.5%).

Self-employed workers who find themselves out of business and become unemployed or ill 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.

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.

My Department undertakes advertising and awareness activities to ensure that all members of the public are made aware of their rights and entitlements and that they are kept informed of significant changes and improvements in schemes and services as they occur.

Information on the full range of social welfare schemes and services is available from the Department's INTREO/local office network and the nationwide network of Citizens Information Centres. In addition, many people access information on the Department's and Citizen Information Board's websites.