Joe Flaherty (Longford-Westmeath, Fianna Fail)
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277. To ask the Minister for Employment Affairs and Social Protection if she will address an issue in respect of participants on CE schemes being levied with a higher PRSI contribution (details supplied). [27846/24]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The aim of the Community Employment scheme is to enhance the employability and mobility of disadvantaged and unemployed persons by providing work experience and training opportunities for them within their communities. Community Employment projects are sponsored by groups wishing to benefit the local community and participants are employed for 19.5 hours per week with the sponsor group.

Employment under Community Employment is insurable under the Social Welfare Acts. Participants joining Community Employment are returned at Class A8/A9 PRSI, which provides them with a paid contribution for each week, as with other Class A employees. These contributions provide entitlement for the full range of social welfare benefits, both during Community Employment employment and when that employment has ceased.

Similar to other Class A employees, Community Employment workers earning up to €352 per week are not liable for PRSI. Those earning over €352 per week are liable for PRSI at a rate of 4%. However, for those earning between €352.01 and €424 per week, there is a PRSI credit of €12 to mitigate the “step effect” employees experience when their earnings exceed €352 per week and they become liable for PRSI.

If the Deputy has additional detail on the case he refers to, my Department is happy to examine the matter to ensure the correct rate of PRSI is being applied for the person concerned.

I trust this clarifies the matter for the Deputy.