Barry Heneghan (Dublin Bay North, Independent)
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358. To ask the Minister for Employment Affairs and Social Protection if he will consider introducing a voluntary higher PRSI contribution option for self-employed workers under Class S, which would allow them to qualify for illness benefit in the same way as PAYE employees; if his Department has examined the feasibility or cost implications of extending illness benefit coverage to self-employed persons; and if he will make a statement on the matter. [62585/25]

Dara Calleary (Mayo, Fianna Fail)
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Illness benefit is the primary short term income support provided by my Department to those who are unable to work due to illness of any type and who are covered by social insurance. Eligibility for illness benefit depends on the person’s PRSI record and class. The person must have made the required number of contributions under class A, E, H or P to qualify. In general, self-employed people make PRSI contributions at class S which does not provide entitlement to illness benefit.

Self-employed contributors pay class S PRSI at a rate of 4.2%. This is 11.25 percentage points lower than the combined employer and employee contribution of 15.45% made in respect of employed contributors. However, self-employed contributors do have access to over 90% of benefits available to employed contributors. The only benefits that class S PRSI does not provide access to are health and safety benefit, illness benefit and occupational injuries benefits.

The cost of extending illness benefit to the self-employed was considered as part of the last Actuarial Review of the Social Insurance Fund as at 31 December 2020 which was published in March 2023. The review found that if the benefit was extended to all self-employed contributors from 2024, the annual cost to the Social insurance Fund would be around €87 million by the end of 2030.

The Programme for Government includes an action to explore the option of giving self-employed workers access to illness benefit by means of making a higher PRSI contribution. My Department has commenced work in this regard. This work includes analysis and assessments of potential costings and the appropriate PRSI rates required in those contexts.

Any changes to the current system would need to be considered in an overall policy and budgetary context.

Malcolm Byrne (Wicklow-Wexford, Fianna Fail)
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359. To ask the Minister for Employment Affairs and Social Protection the full range of services covered by those paying category K PRSI. [62616/25]

Dara Calleary (Mayo, Fianna Fail)
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The PRSI rate applicable for social insurance contributions paid at class K is 4.2%. Contributions at this class do not give rise to a right to any benefits available under the Social Insurance Fund.

There are two subclasses of class K. Subclass K1 applies to specific public office holders, such as the President, the Attorney General, the judiciary and members of the Houses of the Oireachtas, with an income of over €5,200 a year. This charge on these public office holders was brought in Budget 2011 as a solidarity measure to contribute to social insurance at a time when extensive curtailment of social insurance entitlements to private sector employees was introduced.

The remaining subclass, K9, applies to the additional income of three categories of contributors.

• Pre-1995 civil and public servants who pay PRSI at a lower/modified rate (referred to as modified rate contributors) who have either or both self-employed earned and unearned income.
• Employed contributors who have unearned self-employed income only.
• Occupational pensioners who are under State pensionable age (currently 66 years) who have unearned self-employed income only.

It should be noted that class K contributors may establish entitlement to social insurance benefits based on income(s) other than what is applicable under this class. For example, employees pay class A PRSI on their employment income which entitles them to all of the social insurance benefits available.