Skip to main content
Normal View

Social Insurance

Dáil Éireann Debate, Wednesday - 29 July 2020

Wednesday, 29 July 2020

Questions (58)

Denis Naughten

Question:

58. Deputy Denis Naughten asked the Minister for Employment Affairs and Social Protection if she will provide a training and education credit to the PRSI system similar to the homemakers' credit to encourage upskilling; and if she will make a statement on the matter. [18998/20]

View answer

Written answers

Credited contributions form an integral part of the social insurance system.  They are underwritten by the Social Insurance Fund and are designed to protect the social insurance entitlement record of insured workers who for reasons relating to either incapacity, ill-health, unemployment, early retirement, professional training or the provision of care are not in a position to make PRSI payments. 

The Department currently awards credit contributions for education and training to encourage upskilling and employment opportunities.  Similar to other schemes operated by the Department, there are qualifying conditions which must be met before a person can be allocated credited contributions. 

Once these conditions are satisfied, credited contributions may be awarded for weeks during which a person attends a course of training provided or approved by SOLAS, the National Tourism Development Authority, Teagasc, Bord Iascaigh Mhara and courses approved by the Department of Employment Affairs and Social Protection.  Credited contributions are awarded under the same conditions to persons who are attending a Community Employment (CE) scheme or an approved course of education.

In practical terms, the impact of credited contributions differs for long and short term schemes.  For long-term schemes, credited contributions increase the rate of payment, where the person has gaps in their social insurance record.  For example, once the 520 paid contribution (10 years) condition for State pension (contributory) has been met, a person with 10 years contributions and credited contributions for the remainder of their working life would qualify for the full rate of payment.  If credited contributions were not awarded, the person would qualify for a reduced rate of payment.

For short-term schemes, credited contributions provide access to entitlement for those with a more limited recent engagement in the workforce.  For example, one of the qualifying conditions for illness benefit is 104 paid contributions (2 years) since starting work and 39 weeks paid or credited contributions in the relevant tax year (RTY), of which 13 must be paid contributions.  For those who only worked for 13 weeks in the RTY, a person with credited contributions for the balance of that year will qualify for illness benefit, while a person without RTY credited contributions will not.       

A homemaker is a person who gives up work to take care of a child under age 12 or an incapacitated adult or child aged 12 or over, on or after 6 April 1994.  Under the homemaker's scheme, any years spent as a homemaker are disregarded when working out the yearly average contributions for a State pension (contributory).  This has the effect of increasing the yearly average as the same number of total contributions are divided by a smaller number of years. 

I trust this clarifies the matter for the Deputy.

Top
Share