Dáil Éireann Debate, Thursday - 3 December 2020
67. Deputy Christopher O'Sullivan asked the Minister for Social Protection if she will amend the PRSI contribution conditions for carer’s benefit to include class S self-employed contributions in order that self-employed persons can avail of the support without having to be means tested when they have to take time out of work to care for someone. [30678/20]
Amharc ar fhreagraSelf-employed workers who earn €5,000 or more in a contribution year, are liable to pay social insurance contributions at the class S rate of 4%, subject to a minimum annual payment of €500. Such contributors are currently covered for a wide range of social insurance benefits including State pension (contributory), widow's, widower's or surviving civil partner's pension (contributory), guardian’s payment (contributory), maternity, adoptive and paternity benefits, treatment benefits, invalidity pension, partial capacity benefit if in receipt of invalidity pension, jobseeker’s benefit (self-employed) and parent’s benefit. The issue of extending additional social insurance benefits to self-employed persons paying class S social insurance contributions was considered in the Actuarial Review of the Social Insurance Fund, conducted by independent consultants, which was published in October 2017. The Review indicates that if access to certain additional benefits, including carer's benefit, was extended to self-employed contributors, the class S rate of social insurance contribution would have to increase by 94% in order to ensure that the additional benefits are delivered in a revenue neutral manner. This rate of increase would bring the current class S contribution rate of 4% to 7.8% to cover the additional benefits only and does not take account of the value of the existing benefits to such contributors. Any proposal to extend social insurance entitlements of self-employed contributors would have to be considered in the context of the Programme for Government commitment to consider increasing all classes of PRSI over time to replenish the Social Insurance Fund to help pay for measures and changes as well as taking account of the current budgetary and economic circumstances. I trust that this clarifies the matter for the Deputy.
