Joan Burton
Question:34 Deputy Joan Burton asked the Minister for Social and Family Affairs her plans to expand the range of income that is subject to pay related social insurance. [9283/09]
View answerThursday, 5 March 2009
Questions (46)
Written answers
Income chargeable to PRSI is, in general, defined in terms of income liable under Schedule E of the Income Tax Acts. Such income is generally derived from employment or self-employment.
This income base is appropriate to the social insurance system as it is consistent with the contributory principle of the of the social insurance fund, whereby a relationship is established between the employment or self-employment status and the rate of contribution payable and benefits or pensions receivable as a result of these contributions.
In common with many social insurance systems throughout the world, the system is not actuarially based but funded through a pay-as-you-go approach. Today's contributors support both past and current contributors while also ensuring their own future security by building up entitlement to later benefits and pensions and paying into a mechanism that redistributes income over one's own lifetime.
The range of income which is subject to PRSI is reviewed on a regular basis. Most recently in 2004 the exemption of non pecuniary emoluments from the charge to PRSI was removed. As a consequence, subject to certain exemptions, benefits in kind are now subject to PRSI.
Any further revision of the PRSI base would be a matter for consideration by Government in a budgetary context.
Question No. 35 answered with Question No. 32.