In line with a commitment in the Programme for Economic and Social Progress, this year's budget provided for the extension of social insurance to part-time workers. Part-time workers earning £25 per week or more are now covered by the social insurance system. As a result, up to 27,000 part-time workers will become entitled to the full range of social insurances benefits, including disability, unemployment benefit and pensions.
Another effect of these new arrangements is the removal of an anomaly whereby some people had full social insurance benefits while paying lower contributions than others on similar incomes. Formerly, when PRSI was not charged on part-time earnings, a situation could arise where an employee with a main source of income of, say, £11,000, plus £3,000 from a part-time job, paid £605 in social insurance, while an individual with the same total income from one job paid £770 for the same benefits. The new arrangements are more consistent with the principles that people with equal incomes and equal benefit entitlements should pay equal contibutions.
It also means that earnings from both sources of insurable employment are aggregated when calculating pay-related benefit and can thus operate to increase the level of that benefit.
