Dáil Éireann Debate, Wednesday - 28 March 2018
270. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the eligibility of a person who is self-employed for illness benefit; the status of support for the self-employed in this area; and if she will make a statement on the matter. [14333/18]
Amharc ar fhreagraSelf-employed persons are liable for PRSI at the Class S rate of 4% which covers them for access to long-term benefits such as State pension (contributory) and widow's, widower's or surviving civil partner's pension (contributory) as well as some treatment benefits, maternity and paternity benefit, adoptive benefit and guardians payment (contributory). Class S contributions do not provide access to short-term social insurance benefits such as illness benefit. However the means tested supplementary welfare allowance scheme may be available to those who are experiencing financial difficulty.
Self-employed contributors have been covered for invalidity pension since December 2017. This gives the self-employed access to a safety-net of income supports if they become permanently incapable of work as a result of a long-term illness or disability without a means test.
I have already indicated the Government’s intention to examine the further extension of benefits to self-employed people. In doing this, it will take account of results of the 2017 survey of self-employed workers, which indicated that self-employed people are open to paying a higher rate of social insurance in return for additional benefits, and the actuarial review of the social insurance fund which was undertaken by KPMG and published last year.
The actuarial review found that the combined cost of introducing the invalidity, illness, jobseeker’s and carer’s benefits for class S contributions is estimated to be €118 million in 2018, rising to €223 million in 2020. The review indicated that PRSI rates for the self-employed would need to increase from the current level of 4% to 7.8% to ensure a revenue neutral outcome.
