Dáil Éireann Debate, Tuesday - 15 June 2004
605 Mr. Haughey asked the Minister for Social and Family Affairs the PRSI class paid by taxi drivers; the reason benefits are restricted for such self-employed persons; if she will increase the range of benefits which can be claimed under this category; and if she will make a statement on the matter. [17737/04]
View answerWorkers are generally insured under the Social Welfare Acts either as employed or self-employed contributors. The nature of an employment contract, that is, whether as an employee under a contract of service or a self-employed person on a contract for services, determines the class of PRSI contribution due, which in turn determines the range of benefits and pensions to which contributors can build up an entitlement.
Most workers are insured as employees, paying PRSI contributions at Class A which gives them entitlement to a broad range of benefits. While there is no reason why a taxi driver could not be an employee, most taxi drivers are self-employed and pay PRSI contributions at Class S, giving entitlement to a narrower range of benefits.
Class S PRSI was introduced for the self-employed in 1988 and they have been compulsorily insured since. They are eligible for the following benefits and pensions: widow/ers contributory pension; orphans contributory pension; old age contributory pension; maternity benefit; adoptive benefit; and bereavement grant.
When compulsory social insurance for the self-employed was introduced, coverage for insurance-based short-term benefits, such as disability and unemployment, was excluded given the difficulties of applying these to self-employed workers. This represents the position in many EU countries.
There are no plans at present to extend any of the short-term benefits to this group of insured workers. Any such measures would have significant financial implications and would have to be considered in the wider budgetary context. To extend the range of benefits for self-employed contributors would necessitate an appropriate increase in the rate of PRSI Class S contribution.
My Department is examining the issues arising from the extension of other long-term benefits to self-employed persons, such as invalidity pensions. However I am not in a position to bring forward specific proposals at this time.
I would point out however that a taxi driver or any other self-employed person may claim an assistance based payment such as unemployment assistance, or disability allowance.
Entitlement to these payments is contingent on satisfying the appropriate conditions, including a means test under which the annual income from self-employment is assessed.
