asked the Minister for Social Welfare if his attention has been drawn to the difficulties created for casual and seasonal workers by the change made in the Social Welfare Act, 1987, which increased from 26 to 39 the number of weekly social welfare contributions required to qualify for insurance based contributions; if, in view of this, he will reduce the number of contributions required back to 26 or give claimants the option of using the annual level of earnings and annual amount paid in PRSI to establish entitlement; and if he will make a statement on the matter.
Written Answers. - Social Welfare Contributions.
15.
To qualify for insurance based benefits a person must have at least 39 contributions paid at the appropriate rate and 39 contributions paid or credited at that rate in the governing contribution year. Prior to April 1987 the number of contributions required to satisfy both conditions was 26. The increase was designed to ensure that scarce resources are directed to those in greatest need and to ensure that for entitlement to full weekly benefits under the social insurance system there is a reasonably lengthy history of recent attachment to the labour force.
Persons who are employed on a casual or seasonal basis and who are unemployed otherwise would normally, by a combination of contributions paid while they are working and credited contributions for weeks of unemployment, be able to fulfil the conditions for continuing entitlement to benefit. Where, however, persons are employed for a certain period on a full-time basis and for the rest of the time are employed on a part-time basis they may not have sufficient Class A contributions to maintain their entitlements.
Part-time workers who are employed for less than 18 hours per week and who are not mainly dependent on their earnings from that employment are insurable at a reduced rate which gives cover for occupational injuries only. Weeks of insurance at the reduced rate do not reckon for the purposes of entitlement to disability or unemployment benefit.
The whole position of part time workers vis-à-vis social insurance coverage is under review to see how such workers might be provided for within the system while ensuring that entitlements to full weekly benefits are not obtained on the basis of minimal contributions.
The introduction of an earnings criterion to establish entitlement to benefits would have major implications for all social insurance schemes. The National Pensions Board have also specifically been asked to examine the question of pension entitlements of part-time workers. The board is expected to address this issue in detail in its final report.