Dáil Éireann Debate, Thursday - 11 April 2024
163. Deputy Donnchadh Ó Laoghaire asked the Minister for Social Protection the estimated full-year cost of extending carer’s benefit to the self-employed; and if she will make a statement on the matter. [15924/24]
View answerMy Department has made significant improvements to self-employed people's access to social insurance schemes in recent years, including extending access to invalidity pension, jobseeker's benefit and treatment benefit to the self-employed.
These improvements are part of the Government’s stated aim of creating a supportive environment for entrepreneurship, including providing an income safety net to employees and the self-employed alike.
Self-employed workers who earn €5,000 or more in a contribution year, are liable for PRSI at the Class S rate of 4%, subject to a minimum annual payment of €500. This provides them with access to the following benefits: State pension (contributory), widow’s, widower’s or surviving civil partner’s pension (contributory), guardian’s payment (contributory), jobseeker's benefit for the self employed, invalidity pension, maternity benefit, adoptive benefit, paternity benefit, parent's benefit, and treatment benefit.
This compares favourably with employees who, in general, are liable to the Class A rate of 4%. In addition their employers are liable to PRSI at the rate of 8.8% on weekly earnings up to and including €441 or at the rate of 11.05% where weekly earnings exceed €441. Accordingly, the combined rate of PRSI rate paid in respect of Class A employees is 12.8% or 15.05%, depending on the level of weekly earnings. These Class A employees are entitled to the full range of social insurance benefits.
The estimated full year cost in 2024 of extending Carer's benefit to those who are self employed is €7.1 million. This costing is sourced from the Actuarial Review of the Social Insurance Fund 2020.
Any changes in access to additional schemes, including Carer's Benefit, for self-employed contributors would need to be considered in an overall policy and budgetary context, including the appropriate contribution rates.
