The Deputy will understand that policies regarding the application of PRSI and income tax are matters for the Minister for Social, Community and Family Affairs and the Revenue Commissioners respectively.
I understand that home helps are classified as non-PAYE employees and as such are treated as special contributors for PRSI purposes. As the majority of home helps work part-time, their weekly income places them in a cateogry where the payment of PRSI contributions falls only on their employers i.e. the health boards or voluntary organisations. I can confirm that, at the request of the Department of Social, Community and Family Affairs, persons employed as home helps have been asked by the South-Eastern Health Board for their RSI number.
The position as regards the taxation of these payments is that these payments are not subject to the PAYE code but were never exempt from tax. I understand that no decision has been taken by the Revenue Commissioners to change the current tax treatment of these workers.
As I have said in this House previously, the home help service does not come within the realm of conventional employment and the income in respect of home help services is a payment which is not intended to compensate fully for the nature of the task undertaken. As I informed the House, my Department, in consultation with the chief executive officers of the health boards, is considering a number of aspects of the home help scheme, including the overall organisation of the service and the diversity of arrangements which exist within the health boards for the provision of this service.
I can assure the Deputy that related issues, such as rates of remuneration of home helps, will be considered as part of this process and such consideration would take into account any proposed changes in tax and PRSI treatment.
