Paul McAuliffe (Dublin North West, Fianna Fail)
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209. To ask the Minister for Employment Affairs and Social Protection the estimated cost to the Exchequer of reforming the means test for the State pension (non-contributory) in order that the self-employed are treated the same as all other employees. [37175/24]

Paul McAuliffe (Dublin North West, Fianna Fail)
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211. To ask the Minister for Employment Affairs and Social Protection the estimated cost to the Exchequer of treating all self-employed people the same as regular employees on means-tested social protection schemes. [37177/24]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 209 and 211 together.

My Department has made significant improvements to self-employed people's access to social insurance schemes in recent years, including extending access to invalidity pension, jobseeker's benefit and treatment benefit to the self-employed.

These improvements are part of the Government’s stated aim of creating a supportive environment for entrepreneurship, including providing an income safety net to employees and the self-employed alike.

Self-employed workers 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 the following benefits: State pension (contributory), widow’s, widower’s or surviving civil partner’s pension (contributory), guardian’s payment (contributory), jobseeker's benefit for the self-employed, invalidity pension, maternity benefit, adoptive benefit, paternity benefit, parent's benefit, treatment benefit, benefit payment for 65 year olds and partial capacity benefit.

This compares favourably with employees who, in general, are liable to the Class A rate of 4%. In addition, their employers are liable to PRSI at the rate of 8.8% on weekly earnings up to and including €441 or at the rate of 11.05% where weekly earnings exceed €441. Accordingly, the combined rate of PRSI rate paid in respect of Class A employees is 12.8% or 15.05%, depending on the level of weekly earnings. These Class A employees are entitled to the full range of social insurance benefits.

All rates will increase by 0.1% from 1st October and the €441 threshold for the higher employer rate will increase to €496, also from the 1st October.

For those who are self-employed the income is taken to be the gross profit less allowable work related expenses, but not drawings.

The means test on social protection schemes is a structured financial assessment which assesses a range of income and capital factors, which are different for different cohorts within the population. As self-employed people, in a financial sense, are fundamentally different to employed people, it is not possible to treat them the same as employees in respect of means-tested social protection schemes, one of which is the State pension (non-contributory), and therefore we cannot provide a cost in relation to this.

Any changes in access to schemes, for self-employed contributors would need to be considered in an overall policy and budgetary context, including the appropriate contribution rates.

Paul McAuliffe (Dublin North West, Fianna Fail)
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210. To ask the Minister for Employment Affairs and Social Protection the estimated cost to the Exchequer of increasing the cap on credits of 20 years in the assessment of pension eligibility under the total contributions approach system by one year, three years, five years and ten years. [37176/24]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Eligibility for the State Pension (Contributory) (SPC) is based on a number of criteria:

• Being aged 66 or over.
• Having entered the Social Insurance system 10 years before you intend to drawdown your SPC.
• Having a minimum of 520 paid social insurance contributions (i.e., 10 years reckonable PRSI contributions).