Bernard Durkan (Kildare North, Fine Gael)
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197. To ask the Minister for Social Protection the position in respect of applicants for contributory old age pension under the provisions of self-employed contributions provided for under the 1988 Act and where previously, in the event of a shortfall, it was possible to make up the contributions by way of single payment, whether the profit from the business did not warrant the payment of contribution; if such provision still remains available; and if he will make a statement on the matter. [12051/16]

Leo Varadkar (Dublin West, Fine Gael)
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Self-employed persons who earn €5,000 or more in a contribution year pay PRSI at the class S rate of 4%, subject to the minimum payment. Class S contributions are recorded in respect of that contribution year, which assist in establishing entitlement to certain social insurance benefits and pensions, including State pension (contributory).

A self-employed worker whose income is less than €5,000 in a particular year, is not liable to pay PRSI contributions and is not compulsorily insured for social insurance purposes. In this case, the individual may opt to become a voluntary contributor, subject to satisfying the qualifying conditions. The voluntary contribution scheme enables individuals between 16 and 66 years, who are no longer compulsorily insured for social insurance purposes, to pay voluntary contributions to maintain their PRSI record.

To become a voluntary contributor, a person must have paid at least 520 weeks PRSI in either employment or self-employment and apply within 12 months of end of the contribution year in which the compulsorily insured for social insurance purposes.