Dáil Éireann Debate, Thursday - 8 September 2022
1106. Deputy Jim O'Callaghan asked the Minister for Social Protection if a modification will be made to the taxation system in order that if in one year fewer than 52 class A PRSI credits are accrued and a significant amount of PRSI is paid by the taxpayer on unearned income that sufficient class S credits would be awarded to bring the total number of credits to 52 and class K should only be used when there are already 52 class A credits. [42813/22]
Amharc ar fhreagraIt is understood that the Deputy's question is asking that where there is a gap in Class A contributions in any contribution year, that any Class K contributions paid on unearned income should be converted to Class S contributions to bring the total contributions for that year up to the maximum of 52.
Chapter 5B of the Social Welfare Consolidation Act 2005 (as amended) provides, inter alia, for the making of contributions by certain employed contributors on their unearned income subject to the unearned income reaching the chargeable person threshold of €5,000 per annum set by the Revenue Commissioners. In accordance with its underpinning legislation, this contribution, recorded as Class K, does not give access to any social insurance benefit and therefore is disregarded when determining whether the contribution criteria for any such benefit are satisfied.
There are no plans to change these provisions.
I trust this clarifies the matter for the Deputy.
