Michael Healy-Rae
Question:369. Deputy Michael Healy-Rae asked the Minister for Social Protection his views on correspondence (details supplied) regarding the self-employed; and if he will make a statement on the matter. [20674/16]
View answerTuesday, 12 July 2016
Questions (369)
Written answers
The self-employed have been liable for compulsory social insurance since 1988 and pay PRSI at the class S rate of 4%. This entitles them to access long-term benefits such as State pension (contributory) and widow's, widower's or surviving civil partner's pension (contributory) as well as guardians payment (contributory), maternity benefit and adoptive benefit. Self-employed contributors will also have access to the new paternity benefit scheme being introduced this September.
Most employees have access to the full range of social insurance benefits pay Class A PRSI at the rate of 4%. In addition, their employers make a PRSI contribution of 10.75% in respect of their employees, resulting in the payment of a combined 14.75% rate per employee under full-rate PRSI class A. (For employees earning less than €376 per week, the rate of employer’s PRSI is 8.5%).
The self-employed, have never had access to certain benefit payments, such as long term illnesses or disability. However, self-employed workers who become ill may access social insurance supports by establishing eligibility to assistance-based payments such as disability allowance.
The new programme agreed with our partners in Government contains a commitment to introduce an improved PRSI scheme for the self-employed. I intend to extend, over a period of time, the range of benefits which the self–employed can access through the social insurance system, with particular reference to providing access to benefits for long-term illness/incapacity and treatment benefits.
My Department is currently examining the costs and financing of such an extension of benefits as well as the phasing in of access to the benefits. This examination will have to include the level of appropriate additional contribution the self-employed should make for more benefits.
I look forward to making progress on this issue regarding specific proposals, as well as providing a timeframe for implementation later this year.