Dáil Éireann Debate, Thursday - 19 November 2015
50. Deputy Seán Kyne asked the Tánaiste and Minister for Social Protection if pay related social insurance contributions by self-employed persons count towards the cost of hearing aids; if not, the reason; if consideration will be given to amending this; and if she will make a statement on the matter. [41104/15]
Amharc ar fhreagraThe self-employed pay PRSI at the class S rate of 4%. These contributions provide cover for long-term social insurance benefits including the State pension (contributory) and the widow’s, widower’s or surviving civil partner’s contributory pension. They do not provide access to benefits such as treatment benefits which include a contribution towards the cost of hearing aids. In contrast a combined employer and employee rate of 14.75% is paid in respect of most employees, who can then access the full range of social insurance benefits, including treatment benefits.
The most recent Actuarial Review of the Social Insurance Fund published in 2012 found that, in the case of the self-employed with earnings equivalent to national average earnings, a 15% contribution rate would be needed to provide the core full-rate State pension (contributory) to the self-employed. This compares very favourably with the 4% currently paid by the self-employed. The Review also showed highlighted that the self-employed at all income levels got better value for money for their contributions in relation to the State pension than employees generally.
While I am anxious to expand the level of social insurance entitlement for the self-employed, any such change would have to be funded by an appropriate level of contribution.
