The family income supplement (FIS) is designed to provide support for employees on low earnings with families.
The definition of weekly family income for FIS purposes is provided for in Section 227 of the Social Welfare Consolidation Act 2005 (as amended). This section of the Act also defines the items, payable under the PAYE system, which are deductible from weekly family income in order to arrive at net assessable income.
One of the deductible items from gross income, for FIS purposes, are allowable contributions to certain superannuation funds and schemes as referred to in Regulations 41 and 42 of the Income Tax (Employments) (Consolidated) Regulations 2001 (S.I. No. 559 of 2001).
Within these income tax regulations, an allowable contribution means a contribution payable by an employee and deductible by an employer from emoluments for the employee.
Accordingly, under current Social Welfare regulations, only superannuation deductions made through an employee’s salary, under the PAYE system, are allowable as deductions from gross income for FIS purposes.
Before any changes could be made in this regard it would be necessary, in the first instance, for the policy, budgetary and operational implications of such a change to be examined and agreed.
