Family income supplement (FIS) is designed to provide income for employees on low earnings with families. This preserves the incentive to remain in employment in circumstances where the employee might only be marginally better off than if he or she were unemployed and claiming other social welfare payments.
To qualify for payment of FIS a person must be engaged in full time insurable employment which is expected to last for at least 3 months and be working for a minimum of 38 hours per fortnight or 19 hours per week. A couple may combine their hours of employment to meet the qualification criteria. The applicant must also have at least one qualified child who normally resides with them or is supported by them. Furthermore the average family income must be below a specified amount which varies according to the number of qualified children in the family.
FIS is then calculated on the basis of 60% of the difference between the income limit for the family size and the net income of the person(s) raising the children. Net income for FIS purposes comprises of total family income less tax, employee PRSI, health contribution, income levy, superannuation contribution and pension levy.
Once the level of FIS payment is determined, it continues to be payable at that level for a period of 52 weeks provided that the person remains in employment. The rate of payment can be increased if an additional child is born in the course of the 52 weeks.
Current Social Welfare legislation provides that both FIS and Jobseekers Benefit cannot be paid to a person in respect of the same period. However, a person in receipt of FIS whose work pattern changes can collect Jobseekers Benefit instead of their FIS for weeks where they are out of work, if this is financially more beneficial to them. In this situation payment of FIS is suspended for the weeks where the person is not working and chooses to collect a financially more beneficial Jobseekers Benefit payment. The FIS payment resumes again for the weeks that the person is working. The person must continue to satisfy the condition of working at least 19 hours per week or 38 hours per fortnight to avail of this arrangement.
A person who works one week on and one week off, can collect FIS for the week that they are working and either Jobseekers Benefit or FIS, for the week that they are not working, whichever is the most financially beneficial. The underlying entitlement to FIS is not cancelled. Payment is suspended for the weeks that a person chooses to collect the Jobseekers Benefit payment.
I do not propose to change this arrangement as it benefits the families concerned.