Michael McGrath (Cork South Central, Fianna Fail)
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295. To ask the Minister for Social Protection if he will clarify the rules that applied in the period 1985 to 2000 for proprietary directors making PRSI contributions; and if he will make a statement on the matter. [36141/16]

Leo Varadkar (Dublin West, Fine Gael)
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Whether a proprietary director was self-employed was determined by the work they did and the terms and conditions of their work, including the degree of control they had over their own work. Depending on the individual circumstances they could be considered employed (insurable at class A) or self-employed (insurable at class S since 1988 or class K prior to 1988). Prior to 1988, proprietary directors who were deemed self-employed made class K PRSI contributions which did not provide entitlement to social welfare benefits. PRSI for the self-employed was introduced in 1988. Since then, proprietary directors who are deemed self-employed and aged between 16 years and 66 with earnings of more than a specified amount (currently €5,000 per annum) are obliged to pay class S PRSI. This provides entitlement to a limited number of benefits, including the State pension (contributory).

I would also like to point out that Section 16 of the Social Welfare and Pensions (Miscellaneous Provisions) Act 2013, provides that a working director with a shareholding of 50% or more in a company will be deemed to be employed under a contract for services and to be liable for PRSI class S contributions (as a self-employed person).

I trust that this clarifies the matter.