Dáil Éireann Debate, Tuesday - 9 June 2015
154. Deputy Charlie McConalogue asked the Tánaiste and Minister for Social Protection if a self-employed person may choose to pay the minimum contribution in order to put on a Class S PRSI contribution, even if his or her income is below the reckonable limit, in view of the fact that the guidelines do not state that such persons cannot be held insurable; and if she will make a statement on the matter. [21319/15]
Amharc ar fhreagraSelf-employed workers pay PRSI at the class S rate of 4%, subject to a minimum payment of €500, provided their annual income from self-employment exceeds €5,000. Self–employed persons with income below €5,000 cannot opt to pay the minimum Class S payment and remain a Class S contributor.
However, former Class S contributors can opt to become a voluntary contributor, subject to satisfying the qualifying conditions. Voluntary contributions for the self-employed are paid at a flat rate of €500. Voluntary contributions provide cover for the State Pension Contributory, Widow/er's and Surviving Civil Partner's Contributory Pension and Guardian's Payment Contributory. One of the conditions of the scheme is that application to become a voluntary contributor must be made by the end of the contribution year subsequent to the contribution year in which they ceased to be compulsorily covered.
