Dáil Éireann debate -
Thursday, 9 Jun 1983

Vol. 343 No. 5

Written Answers. - PRSI Payment.

626.

Mr. Gene Fitzgerald

asked the Minister for Social Welfare the categories of State employees that do not pay full PRSI; the numbers employed in each category; and their rate of contribution.

Minister for Social Welfare (Mr. B. Desmond)

The numbers of insured persons in each of the relevant contribution classes during the 1980-81 income tax year, the most recent year in respect of which statistics are available at present, were as follows: Class B, 50,500; Class C, 11,400; Class D, 93,800; Class H, 14,800; Class L, 150.

The categories of employees and the rates of contribution are set out in the following table:—

		Men and women insurable at standard class rate	Women in receipt of social welfare widow's pension, deserted wife's benefit or social assistance allowance for deserted wives or unmarried mothers.	Men and women who hold medical cards
Description of persons within contribution class	Employee pays Health Contribution, Youth Employment Levy and Income Levy.	Employee pays no contribution.	Employer pays Health Contribution, Youth Employment Levy and Income Levy.
			First £11,000 of all earnings	Excess of earnings over £11,000 and under £13,000		First £11,000 of all earnings	Excess of earnings over £11,000 and under £13,000		First £11,000 of all earnings	Excess of earnings over £11,000 and under £13,000
			%	%		%		%	%
Class	Permanent and	B1 ER	1.95	1.95	B2	1.95	B3	4.95	3.95
B	pensionable civil	EE	3.90	2.90		Nil		0.90	0.90
	servants
		Total	5.85	4.85		1.95		5.85	4.85
Class	Gardaí,	C1 ER	1.85	1.85	C2	1.85	C3	4.85	3.85
C	commissioned army	EE	3.90	2.90		Nil		0.90	0.90
	officers, permanent
	members of the army	Total	5.75	4.75		1.85		5.75	4.75
	nursing service
Class	Permanent and	D1 ER	2.15	2.15	D2	2.15	D3	5.15	4.15
D	pensionable	EE	3.90	2.90		Nil		0.90	0.90
	employees in the
	public service other than those mentioned in Class B and C	Total	6.05	5.05		2.15		6.05	5.05
Class	NCOs and enlisted	H1 ER	11.30	11.30	H2	11.30	H3	14.30	13.30
H	personnel of the	EE	8.40	7.40		Nil		5.40	5.40
	Defence Forces,
	temporary army nursing personnel	Total	19.70	18.70		11.30		19.70	18.70
Class	Registered doctors	L1 ER	0.10	0.10	L2	0.10	L3	3.10	2.10
L	and dentists	EE	3.00	2.00		Nil		Nil	Nil
	employed in the civil
	service	Total	3.10	2.10		0.10		3.10	2.10

A contribution of 2 per cent representing the Youth Employment Levy and the Income Levy continues to be payable on all earnings in excess of £1 3,000.

627.

Mr. Gene Fitzgerald

asked the Minister for Social Welfare the benefits for which public employees paying reduced rates of PRSI are not at present eligible; and the likely cost from 6 April 1983 and in a full year of extending these benefits to serving public employees, excluding those already retired or who have otherwise left public employment prior to 6 April 1983.

Minister for Social Welfare (Mr. B. Desmond)

Permanent and pensionable employees in the public sector covered by the reduced rate of pay-related social insurance contribution are not entitled to disability benefit, unemployment benefit, maternity allowance, pay-related benefit, invalidity pension, retirement pension, old age (contributory) pension, death grant or treatment benefit.

The reduced rate of contribution payable in respect of these employees gives cover for widows' and orphans' pensions and deserted wife's benefit and limited occupational injuries benefit only.

As entitlement to social insurance benefits depends on the establishment of an appropriate record of insurance, the extension of full social insurance cover to serving public sector employees from a current date would not give rise to any immediate cost. If, for example, full insurance cover was extended to public servants from 6 April 1983 entitlement to disability benefit and pay-related benefit would not under the normal contribution conditions arise until January 1985 while entitlement to retirement pension would not arise before 1993. However, once entitlement to benefits had been established, the extension of full insurance cover to public servants would ultimately involve additional expenditure from the Social Insurance Fund and the Occupational Injuries Fund of some £127 million in 1983 terms for a full year including administrative costs. This cost is based on the assumption that the incidence of claims, other than for unemployment payments, from public servants would be the same as from the current fully insured population. No provision has been made for unemployment payments as it can be assumed that such payments would be negligible.

628.

Mr. Gene Fitzgerald

asked the Minister for Social Welfare the gross revenue that would be raised (a) in the current year from 6 April; and (b) in a full year by imposing full PRSI on all employeees paid by the State and by public authorities.

Minister for Social Welfare (Mr. B. Desmond)

The gross revenue that would be raised by imposing full pay-related social insurance contributions from 6 April 1983 on all employees paid by the State and by public authorities is estimated at:

(a) £162 million in 1983 of which the employers would pay £109 million and employees £53 million;

(b) £225 million in the 1983-84 contribution year of which the employers would pay £151 million and employees £74 million.