Written answers

Thursday, 6 October 2016

Department of Social Protection

Social Welfare Benefits Eligibility

Photo of Bríd SmithBríd Smith (Dublin South Central, People Before Profit Alliance)
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25. To ask the Minister for Social Protection the reason means testing by his Department is done on gross pay and not take home net pay; and if he will make a statement on the matter. [28756/16]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The earnings assessed for social assistance means testing purposes generally is based on earnings net of PRSI contributions, superannuation/PRSA contributions and trade union subscriptions. No account is taken in the calculation of any income tax/USC payable on earnings. The purpose of the current means-testing arrangements is to ensure that the maximum amount of payments go to the people who need them the most. It should be noted that a single person is not liable for income tax if he or she earns €16,500 per annum or less and the equivalent figure for a married couple with one of the couple working is €24,750. USC is payable on earnings above €13,000 per annum, the threshold for payment of the USC having increased significantly over the years, from €4,004 in 2011.

The principal employment supplement payment for families with children is Family Income Supplement. The income test for this scheme is net of all statutory charges including income tax, USC and PRSI.

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