Dáil Éireann Debate, Tuesday - 22 September 2015
136. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Social Protection her views that the imposition of PRSI charges on community employment scheme participants receiving more than €352 per week, constitutes an unfair and unreasonable burden on those with a number of dependants, particularly those in community employment projects; if she will support amendments to rectify this issue; and if she will make a statement on the matter. [30882/15]
View answer172. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Social Protection if she will provide a PRSI exemption for participants in community employment schemes who are in receipt of payments in excess of €352 and who are currently finding that there is no financial incentive to participate in such a scheme; and if she will make a statement on the matter. [30881/15]
View answerI propose to take Questions Nos. 136 and 172 together.
Participants in certain employment schemes, including community employment schemes (CE), receive a weekly payment which is equal to the social welfare payment appropriate to their family size, plus a top up of €20, subject to a minimum payment of €208 per week. This income has been for many years treated in the same manner as earnings from employment for PRSI purposes and accordingly is subject to Class A PRSI. Therefore participants on CE schemes, similar to other private sector employees 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).
As of 31 August 2015, there were 1,957 CE participants in receipt of payments in excess of €352 per week and who would therefore be liable to make an employee PRSI contribution. For over 98% of these CE participants there is a financial incentive to participate in the scheme as the net amount of their CE payment exceeds their underlying social welfare entitlement.
Any proposed PRSI exemption for CE participants paying PRSI would have to apply to all workers similarly paying PRSI and with access to the same level of social insurance benefits. This would have to be considered in a Budgetary context.
