Peter Fitzpatrick (Louth, Fine Gael)
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212. To ask the Minister for Employment Affairs and Social Protection the reason the rate of PRSI for the self-employed (details supplied) has changed; and if she will make a statement on the matter. [39952/17]

Regina Doherty (Meath East, Fine Gael)
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Self-employed people who earn €5,000 or more in a contribution year are liable for PRSI at the class S rate of 4%, subject to a minimum annual payment of €500. This provides them with access to a range of social insurance benefits including state pension (contributory) and widow’s, widower’s or surviving civil partner’s pension (contributory), guardian’s payment (contributory), maternity benefit, adoptive benefit and paternity benefit.

Since March 2017, self-employed contributors have access to the treatment benefit scheme which includes free eye and dental exams, and contributions towards the cost of hearings aids. From October 2017, for all workers including the self-employed, treatment benefit entitlements will also be extended to provide further dental and optical benefits.

In December of this year, self-employed contributors will be eligible for invalidity pension, which, for the first time, will provide access to income support if they have a serious illness or injury that prevents them from working, without having to go through a means test.

The requirement to pay a minimum annual class S charge is based on the need to maintain a relationship between contributions paid and the level of entitlements to which those contributions give access. For example, entitlement to State pension (contributory) at the rate of €238.30 per week can be generated on the basis of the single annual €500 class S contribution.

The minimum annual class S charge was increased from €253 to €500 in January 2013, in line with increases in other minimum annual charges. The €253 class S charge had remained unchanged since 2002, even though the class S rate of contribution had increased from 3% to 4% in January 2011.