Written answers

Thursday, 8 October 2015

Department of Social Protection

Wage Subsidy Scheme

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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34. To ask the Tánaiste and Minister for Social Protection her views on the issues raised in correspondence from a group (details supplied). [35174/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The wage subsidy scheme (WSS) is an employment support to private sector employers, the purpose of which is to increase the numbers of people with disabilities participating in the open labour market. The scheme encourages employers by providing financial incentives to employ people with a disability for between 21 and 39 hours per week under a contract of employment. The rationale behind this approach is to increase the potential for people with disabilities, with the capacity to do so, to obtain employment in the open labour market and become more independent and therefore less reliant on social welfare payments. Any reduction of the hours worked threshold would dilute this policy intent.

With regard to the proposal to abolish PRSI contributions for a person with a disability, it should be noted that social insurance is based on the principle that there is a direct link between the PRSI contributions paid and entitlement to a range of social insurance benefits which are payable as a right, if and when particular contingencies arise. This contributory principle underpins both the operation and the funding of social insurance. Dispensing with the requirement to pay PRSI contributions while retaining an entitlement to social insurance benefits, for any particular category of worker, would negate this principle. Exempting one particular category of worker from the paying PRSI contributions without affecting their entitlement could also lead to other workers seeking a similar exemption which would have long term implications for funding the social insurance system.

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