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Dáil Éireann debate -
Tuesday, 30 Oct 1973

Vol. 268 No. 6

Ceisteanna—Questions. Oral Answers. - Pay Related Benefits.

24.

asked the Minister for Social Welfare when it is proposed to bring the Social Welfare (Pay-Related Benefit) Act, 1973, into operation.

It is proposed to bring the pay-related benefit scheme into operation on 6th April, 1974, the start of the 1974/75 income tax year.

25.

asked the Minister for Social Welfare if he will give full details of the pay-related benefit scheme; and the projections as to how many persons may partake of the scheme.

The main provisions of the scheme of pay-related benefit are set out in the Social Welfare (Pay-Related Benefit) Act, 1973 which also provides for the making of regulations prescribing the remaining details of the scheme. Preparation of these regulations has reached an advanced stage and I expect to have them finalised shortly.

Briefly, the scheme provides that pay-related benefit will be paid for up to 24½ weeks to supplement flat-rate disability benefit, unemployment benefit, maternity allowance and, in certain circumstances, occupational injury benefit. The amount of benefit will be 40 per cent of the employee's reckonable weekly earnings in excess of £14 subject to an over-riding limit yet to be prescribed. Pay-related contributions will be payable by both employers and employees as a percentage of the employee's current earnings, again subject to an over-riding limit which, with the rates of contribution, will also be settled by regulation. These contributions will be collected by the Revenue Commissioners through the income tax machinery.

It is proposed to start the scheme on 6th April, 1974 and it is estimated that it will cover 700,000 insured persons.

Will it apply to agricultural workers?

We hope that by the time it is introduced agricultural workers will be included.

Then it will apply?

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