Martin Kenny (Sligo-Leitrim, Sinn Fein)
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128. To ask the Minister for Employment Affairs and Social Protection if he will make changes to the farm assist scheme to allow credit contributions for the purposes of the contributory pension for those who received no credits while on the farm assist scheme; and if he will make a statement on the matter. [60221/25]

Dara Calleary (Mayo, Fianna Fail)
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The farm assist scheme was introduced in 1999 to provide income support for low income farmers. It replaced the former smallholder's unemployment assistance payment. In line with the then pre-existing arrangements for unemployment assistance (including smallholders), any income from self-employment was exempt from the class S social insurance charge applied to self-employed workers, regardless of the level of such income.

This exemption was abolished in 2007. Since 1 January 2007, those persons receiving farm assist are liable to pay a class S social insurance contribution on their annual self-employed income, provided it is €5,000 or more. These contributions entitle such persons to a range of social insurance benefits, most notably the state pension (contributory).

For those earning below €5,000 per annum, the voluntary contributions scheme may be available to them, dependent on meeting the qualifying criteria. This scheme gives an opportunity to persons who were, but who are no longer, compulsorily insured under the social insurance system, to pay contributions directly to my Department. Voluntary contributions ensure continuity of social insurance for pension purposes during periods where former contributors are no longer insured as employed or self-employed persons.

The credited contribution scheme (“credits”), which relates to employee contributions only, is an integral part of the social insurance system. Credits cover gaps in an employee’s social insurance record where they are not in a position to pay social insurance such as during periods of unemployment, illness, etc.

Credits are not available to class S self-employed contributors, including recipients of farm assist. Employees are only insured on a week by week basis while self-employed contributors are insured on an annual basis. This means that self-employed contributors pay a single annual social insurance contribution which entitles them to the full 52 contributions awarded in a year, regardless of when they worked to generate their income, whether in as little as one week or throughout the full year.

I am satisfied with the current arrangements whereby class S PRSI is payable from a low level of income of €5,000 per annum and the voluntary contributions scheme is available for those with income below that level.

I trust this clarifies the matter for the Deputy.