Dáil Éireann Debate, Tuesday - 9 April 2024
806. Deputy Aengus Ó Snodaigh asked the Minister for Social Protection the options available for self-employed persons paying a PRSI S Stamp but with underlying health issues for which insurance companies will not issue with income protection cover, meaning they have no sick pay cover in event of illness; and if she will make a statement on the matter. [15288/24]
View answerInvalidity pension is a long-term income support payable to an insured person who satisfies certain PRSI contribution conditions and who is permanently incapable of work due to an illness or incapacity. Access to invalidity pension is available to class S self-employed contributors to protect them in the event of long-term injury or disablement.
Illness Benefit is the primary short term income support provided by my Department to those who are unable to work due to illness of any type and who are covered by social insurance.
Eligibility for illness benefit depends on the person’s PRSI record and class. People must have made the required number of contributions under class A, E, H or P to qualify.
In general, self-employed people make PRSI contributions at class S which does not count towards eligibility for illness benefit. However, self-employed contributors who cannot work due to an illness or a disability may apply for invalidity pension (as mentioned previously) or disability allowance (a means-tested social assistance payment).
Illness benefit is funded by the Social Insurance Fund through PRSI contributions. The Fund is central to our social protection system and the Government needs to ensure that it can provide adequate and sustainable social insurance pensions and benefits for a growing and ageing population.
Self-employed people pay contributions to the Fund at a lower rate of 4%. This is over 11 percentage points lower than the combined employer and employee contribution of 15.05% made in respect of employed contributors. However, self-employed contributors do have access to over 90% of benefits available from the Fund:
These are:
• Adoptive Benefit;
• Guardian's Payment (Contributory);
• Invalidity Pension;
• Jobseeker's Benefit (Self-Employed);
• Maternity Benefit;
• Parent's Benefit;
• Partial Capacity Benefit (where in receipt of Invalidity Pension);
• Paternity Benefit;
• State Pension (Contributory);
• Benefit Payment for 65 Year Olds;
• Treatment Benefit; and
• Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension.
The only benefits that class S PRSI do not provide access to are carer's benefit, health and safety benefit, illness benefit, and occupational injuries benefit.
In circumstances where people are ill but do not qualify for illness benefit, my Department provides means tested supports under the supplementary welfare allowance scheme. An additional needs payment may also be available to people who have expenses that they cannot pay from their weekly income.Any changes to the illness benefit scheme would need to be considered in an overall policy and budgetary context, including the contribution rates for self-employed contributors.
I trust this clarifies the matter for the Deputy.
