Denis Naughten (Roscommon-Galway, Independent)
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29. To ask the Minister for Employment Affairs and Social Protection if she has read the recent NESC report on the self-employed. [2046/23]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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I am aware of the National Economic and Social Council (NESC) paper on ‘The Position of the Self-Employed’ which was published in November 2020. I note that the paper considers a number of issues concerning self-employed workers, and groups these into the four policy areas of: the social insurance contributions made by self-employed workers; the social protection supports provided to them; the differentiation between employed and self-employed workers; and representation for self-employed workers.

Self-employed workers are now covered for most of the benefits available under the social insurance scheme. This represents approximately 93% of the value of all benefits paid by the social insurance fund, in return for a contribution which is 11 percentage points lower than that made in respect of employed contributors.

As the Deputy will be aware, the Programme for Government includes a commitment that consideration will be given to increasing all classes of social insurance over time to replenish the social insurance fund to help pay for measures and changes to be agreed.

I announced a series of landmark reforms to the State Pension system in September 2022. The measures, which were approved by Cabinet, represent the biggest ever structural reform of the Irish State Pension system. As part of the reform, officials in my Department are currently working on developing proposals for Government in considering whether any changes will be required to social insurance contribution rates or the social insurance revenue base from 2024 and for the following decade. These proposals will be based upon new data from the latest Actuarial Review of the Social Insurance Fund which will be published shortly. It is anticipated that any changes to contribution rates, including contribution rate increases for the self-employed, or social insurance base broadening measures, will be considered as part of this process.

The second issue relates to the levels of welfare support provided to self-employed workers. My Department offers a range of income supports to self-employed people, including: jobseeker's benefit self-employed; means tested jobseeker’s allowance; the back to work enterprise allowance; and the short term enterprise allowance. In addition, my Department's employment support services are available to self-employed people on a voluntary basis through their local Intreo Centre.

Self-employed workers benefitted from a range of supports during the Covid 19 pandemic. Self-employed workers could avail of: the pandemic unemployment payment; the enhanced illness benefit payment of €350 per week; and the once-off enterprise support grant of up to €1,000 to assist with the costs associated with reopening a business following the imposition of Covid-19 related restrictions.

With respect to the categorisation of self-employed workers, my Department’s social welfare inspectorate carry out, as part of their duties, employer investigations to ensure compliance with social insurance law and employment status investigations form part of this work. As an integral part of the approach to addressing potential false self-employment, a new team of inspectors was established in late 2019 to focus entirely on detecting and investigating such practices.

A revised 'Code of Practice for Determining Employment or Self-Employment' was finalised by the interdepartmental working group compromising my Department, the Revenue Commissioners and the Workplace Relations Commission, and was published in July 2021. The purpose of this document is to provide a clear understanding of employment status, taking into account current labour market practices and developments in legislation and caselaw. The Code aims to be of benefit to employers, employees, independent contractors and legal, financial and HR professionals. It is also aimed at investigators, decision-makers and adjudicators in the Department of Social Protection, the Office of the Revenue Commissioners, the WRC, their respective appeals bodies, and the courts.

Finally, in the area of representation, industrial relations in Ireland rests on a voluntary model. The State’s role is largely restricted to the development of an institutional framework supportive of a voluntary system that is premised upon freedom of contract and freedom of association. Progressing matters of representation come within the remit of my colleague, the Minister for Enterprise, Trade and Employment.

I trust this clarifies the matter for the Deputy.