Written answers

Tuesday, 28 March 2023

Department of Employment Affairs and Social Protection

Social Welfare Code

Photo of Paul McAuliffePaul McAuliffe (Dublin North West, Fianna Fail)
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115. To ask the Minister for Employment Affairs and Social Protection her plans to change the social welfare entitlements of public service employees who paid the modified class-D social insurance rate that were employed before 6 April 1995; and if she will make a statement on the matter. [15183/23]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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Civil and public sector employees recruited prior to 6 April 1995 pay social insurance contributions at modified rates under classes B, C and D. All civil and public servants recruited from 6 April 1995 pay social insurance at the standard class A rate.

Prior to 6 April 1995, civil and public servants did not have access to the full range of social insurance benefits as their terms of employment protected them against the main contingencies of illness and old age, and the risk of unemployment was not considered a factor due to the nature of their employment.

Consequently, such contributors pay less in social insurance contributions in return for fewer social insurance benefits. For example, class D contributors currently pay a contribution at the rate of 0.9% on their weekly earnings up to €1,443 and 4% on weekly earnings over that amount and their employers pay a contribution of 2.35% on all employee earnings.

In contrast, class A contributors pay a contribution of 4% on their weekly earnings and their employers pay a contribution of 8.8% where employees’ weekly earnings are €441 or less and 11.05% where their employees’ weekly earnings exceed €441. Class A contributors have access to the full range of social insurance benefits.

While the modified rates of social insurance under classes B, C and D do not give entitlement to the State pension (contributory), such contributors may, subject to a means test, qualify for the State pension (non-contributory).

Social insurance contributions are made in accordance with the legislation and the employment terms and conditions in force at the time they are made and eligibility for social insurance benefits flow from that. I have no plans to extend further social insurance benefits to modified contributors.

I trust this clarifies the matter for the Deputy.

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