Michael Creed
Question:58 Mr. Creed asked the Minister for Social Welfare the benefits that accrue from J rate PRSI. [3437/95]
Written Answers. - Class J PRSI Contributions.
Michael Creed
Question:59 Mr. Creed asked the Minister for Social Welfare if a person who is already paying J rate PRSI contributions can purchase A rate contributions.[3441/95]
It is proposed to take Questions Nos. 58 and 59 together. The PRSI Class J contribution (employer share of 0.5 per cent and employee share Nil) is applicable to employees in any week that the gross earnings from all employments are less than £30. Class J gives cover for occupational injuries benefits only — such cover is essential in the event of an accident in the workplace.
In general the PRSI class is determined by the nature of a person's employment and the level of earnings involved and a person cannot opt to pay Class A. However, people paying Class J who were formally insurable at Class A can in certain circumstances opt to pay an additional voluntary contribution directly to my Department which will give them cover for pension purposes only.
In order to be insurable at Class A, a person's earnings from all employments in the week must be at or above a certain level. This earnings threshold was £25 from April 1991 to 5 April 1994, when it was increased to the present level of £30 or more per week.
However, certain categories of employees are insurable at Class J regardless of their earnings. These include: (i) Employees over the age of 66 and people engaged in subsidiary employments, who are insured for occupational injuries benefits only; (ii) Participants in community employment and certain FÁS training schemes are also insurable for occupational injuries benefits only. However, those who, immediately prior to commencing these schemes, were insured at Class A or in receipt of credited contributions, continue to receive credited contributions for the duration of the scheme. These credited contributions are awarded for the purposes of maintaining the person's existing insurance record and are reckonable for all benefits and pensions, subject to the usual conditions.