Dáil Éireann Debate, Wednesday - 18 January 2023
931. Deputy Mick Barry asked the Minister for Social Protection if she will consider reviewing the benefits available for those paying class S PRSI; if access to illness benefit will be extended to this group given the increased awareness and necessity for persons to isolate when ill from many illnesses and the increasing number of persons in this group who are on low or middle incomes; and if she will make a statement on the matter. [2247/23]
View answer933. Deputy Michael Healy-Rae asked the Minister for Social Protection if her Department has any plans to allow self-employed workers to claim illness benefit when they are out sick; and if she will make a statement on the matter. [2373/23]
View answerI propose to take Questions Nos. 931 and 933 together.
Self-employed workers whose income is €5,000 or more in a contribution year, are liable to pay social insurance contributions at the class S rate of 4%, subject to a minimum annual payment of €500. Such contributors are currently covered for a wide range of social insurance benefits including State pension (contributory), widow's, widower's or surviving civil partner's pension (contributory), guardian’s payment (contributory), maternity, adoptive and paternity benefits, treatment benefits, invalidity pension, partial capacity benefit if in receipt of invalidity pension, jobseeker’s benefit (self-employed) and parent’s benefit.
The issue of extending additional social insurance benefits to self-employed persons paying class S social insurance contributions was considered in the last Actuarial Review of the Social Insurance Fund, conducted by independent consultants, and published in October 2017.
That Review indicates that if access to certain additional benefits, including illness benefit, was extended to self-employed contributors, the class S rate of social insurance contribution would need to increase by 94% in order to ensure that the additional benefits are delivered in a revenue neutral manner. This rate of increase would bring the current class S contribution rate of 4% to 7.8% to cover the additional benefits only and does not take account of the value of the existing benefits to such contributors at the time of the Review.
Since the Review was published, self-employed contributors have gained access to invalidity pension from December 2017 and jobseeker's benefit (self-employed), and parent's benefit from November 2019, without any increase in their rate of contribution. With respect to the level of contribution to the social insurance fund by self-employed workers, they are now covered for most of the benefits available under the social insurance scheme which represents approximately 93% of the value of all benefits paid by the social insurance fund - in return for a contribution of 11 percentage points lower than that made in respect of employed contributors.
In view of the significant access to a range of social insurance benefits in recent years, without any increase in the rate of contribution by self-employed workers, access to the remaining benefits, including illness benefit, would fall to be considered in the context of the findings of the actuarial review due later this year and in the development of a proposal on the required changes to social insurance contribution rates.
I trust this clarifies the matter.
