Dáil Éireann Debate, Tuesday - 23 June 2020
826. Deputy David Cullinane asked the Minister for Employment Affairs and Social Protection the estimated cost per payment of extending each social welfare entitlement to the self-employed, in tabular form; and if she will make a statement on the matter. [11969/20]
Amharc ar fhreagraMy Department has made significant improvements to self-employed people's access to social insurance schemes in recent years, including extending access to invalidity pension, jobseeker's benefit and treatment benefit to the self-employed.
These improvements are part of the Government's stated aim of creating a supportive environment for entrepreneurship, including providing an income safety net to employees and the self-employed alike.
Self-employed workers who earn €5,000 or more in a contribution year, are liable for PRSI at the Class S rate of 4%, subject to a minimum annual payment of €500. This provides them with access to the following benefits: State pension (contributory); widow's, widower's or surviving civil partner's pension (contributory); guardian's payment (contributory); jobseeker's benefit for the self-employed; invalidity pension; maternity benefit; adoptive benefit; paternity benefit; parent's benefit and treatment benefit.
This compares favourably with employees who, in general, are liable for the Class A rate of 4%. In addition, their employers are liable for PRSI at the rate of 8.8% on weekly earnings up to and including €395 or at the rate of 11.05% where weekly earnings exceed €395. Accordingly, the combined rate of PRSI rate paid in respect of Class A employees is 12.8% or 15.05%, depending on the level of weekly earnings. These Class A employees are entitled to the full range of social insurance benefits.
The estimated cost of extending illness benefit and carer's benefit for each of the years 2021 to 2025 is shown in the following table.
Projected costs of extending Invalidity, Carer's Benefits
|
Year |
Illness |
Carer's |
Total |
|
€million |
€million |
€million |
|
|
2021 |
88 |
5 |
93 |
|
2022 |
94 |
5 |
99 |
|
2023 |
99 |
5 |
104 |
|
2024 |
104 |
6 |
110 |
|
2025 |
108 |
6 |
114 |
