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Employment Support Services

Dáil Éireann Debate, Thursday - 12 February 2015

Thursday, 12 February 2015

Questions (50)

Clare Daly

Question:

50. Deputy Clare Daly asked the Tánaiste and Minister for Social Protection if she will review the Gateway scheme in view of the fact that participants with children and other dependants, earning an extra €20 per week, are subject to income tax and pay-related social insurance, so that taking part in the scheme actually reduces their net income, when the end of the fuel allowance season is taken into account (details supplied); and if she will make a statement on the matter. [6476/15]

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Written answers

Gateway is a Local Authority initiative which aims to provide short-term quality and suitable work opportunities to improve the employability and maintain the work readiness of those who have been unemployed for 24 months or more.

All employees who have income over €352 per week are liable for Class A PRSI contribution at a rate of 4% on the total earnings. Employees are also subject to normal income tax and payroll deductions if their level of earnings brings them into the tax net. This also applies to employees in the private and public sector and those engaged in other work placements initiatives such as Tús, community employment and the rural social scheme.

Participants on employment schemes, who pay Class A, can establish entitlement to the full range of short term benefits including jobseeker’s benefit, illness benefit, and maternity benefit and to long term benefits including state pension (contributory).

The experience gained on work placements can greatly enhance a person’s ability to identify other work and development opportunities to access the jobs market. Additional benefits that must be considered in this context are the provision of participants with paid annual leave and the opportunity to engage in paid work in the hours they are not working on the scheme. The Department continues to work with the Local Authorities to highlight the benefits of work placements to allow the person affected to remain on the scheme or to identify other activation opportunities.

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