Dáil Éireann Debate, Tuesday - 23 April 2024
420. Deputy Matt Carthy asked the Minister for Social Protection the reason a person on class D contribution within a State agency is unable to change to class A contributions; if she has considered implementing changes to facilitate same; and if she will make a statement on the matter. [18020/24]
View answerSocial insurance contributions are made in accordance with the legislation and the employment terms and conditions in force at the time they are made, and eligibility for social insurance benefits flows from those particular contributions.
Civil and public sector employees recruited prior to 6 April 1995, pay social insurance contributions at modified rates under classes B, C and D. Amongst the class B contributors are permanent and pensionable civil servants and Gardaí, the class C contributors are commissioned army officers and members of the army nursing service and the class D contributors include permanent and pensionable employees in the public service other than those insured at classes B and C. Civil and public servants recruited from 6 April 1995 pay social insurance at the standard class A rate.
Prior to 6 April 1995, civil and public servants did not have access to the full range of social insurance benefits as their terms of employment protected them against the main contingencies of illness and retirement, and the risk of unemployment was not considered a factor due to the nature of their employment.
Consequently, such contributors pay less in social insurance contributions in return for fewer social insurance benefits. For example, class D contributors currently pay a contribution at the rate of 0.9% on their weekly earnings up to €1,443 and 4% on weekly earnings over that amount and their employers pay a contribution of 2.35% on all employee earnings. Class D contributors are currently entitled to widow's, widower's or surviving civil partner's (contributory) pension, guardian's payment (contributory), occupational injuries benefits, parent's benefit and carer's benefit.
In contrast, civil and public servants recruited from 6 April 1995 pay a class A social insurance contribution of 4% on their weekly earnings and their employers pay a contribution of 8.8% where employees’ weekly earnings are €441 or less and 11.05% where their employees’ weekly earnings exceed €441. Class A contributors have access to the full range of social insurance benefits.
I am satisfied with the current rules that apply across the PRSI classes and I have no plans to change them to facilitate a class D contributor changing to class A within the same employment.
I trust this clarifies the matter for the Deputy.
