Vol. 531 No. 3
184 Mr. G. Reynolds asked the Minister for Finance if, in a case where a person is working in Northern Ireland but residing here, the jurisdiction in which taxes and social insurance contri butions are to be paid; and if the person is covered for social and health insurance entitlements in both jurisdictions. [5429/01]
Legislation was introduced in the Finance Act, 1998 to provide relief for cross-Border workers, namely, individuals who are resident in the State but who work outside the State. The relief applies to individuals who commute daily or weekly to their place of work outside the State and who pay tax in the other country on the income from their employment. The effect of the relief, which applies from 6 April 1998, is that a resident of the State working in Northern Ireland is taxable on the income from that employment in the United Kingdom only.
As regards the social and health insurance entitlements, I have been informed by the Department of Social, Community and Family Affairs that the regulations on social security for migrant workers are directly applicable in Northern Ireland and the Republic of Ireland in the case of the nationals of all EU countries and the EEA countries – Iceland, Liechtenstein and Norway. The regulations are designed to protect the entitlements of persons who move between member states. The regulations provide that only the legislation of one member state applies for social security purposes and that the applicable legislation is normally the legislation of the State where the person is employed or self-employed or was last employed or self-employed before the claim was made.
In the case of a person working in Northern Ireland and residing in the Republic of Ireland, the legislation applicable would be that of Northern Ireland where the social insurance contributions due would be paid. The Northern Ireland authorities would also be the competent authorities for claims for short-term benefits such as sickness and maternity and for invalidity. The person concerned may opt to obtain health services in either Northern Ireland or the Republic of Ireland. Family benefits would be payable by the Northern Ireland authorities.
Separate pensions for old age, retirement, and widowed persons would be payable by each State, however, provided they have been insured for at least one year. Unemployment benefits would be payable by the State of residence unless the person can prove to have closer ties with the country of last employment.
