We use Google Analytics to see which pages are read and how the site is used, so we know what to improve. This only runs if you accept. See our privacy notice for details.

Dáil

Written answer

Social Insurance

2061. Deputy Duncan Smith asked the Minister for Social Protection to provide an update on his Department's review into exploring the expansion of the illness benefit scheme to self employed people through them paying a higher PRSI contribution as within the program for government; and if he will make a statement on the matter. [62685/26]

Comment on this
Dara Calleary Minister for Social Protection Fianna Fáil

Illness Benefit is the primary short term income support provided by my Department to those who are unable to work due to illness of any type and who are covered by social insurance. Eligibility for Illness Benefit depends on the person’s PRSI record and class. The person must have made the required number of contributions under class A, E, H or P to qualify. In general, self-employed people make PRSI contributions at class S.

Self-employed contributors pay class S PRSI at a rate of 4.2%. This is 11.25 percentage points lower than the combined employer and employee contribution of 15.45% made in respect of employed contributors. However, self-employed contributors do have access to over 90% of benefits available to employed contributors.

The only benefits that class S PRSI does not provide access to are Health and Safety Benefit, Illness Benefit and Occupational Injuries Benefits. Self-employed contributors who are ill may qualify for Invalidity Pension.

In circumstances where people are ill but do not qualify for a contributory payment my Department provides means tested supports under the Disability Allowance scheme and the Supplementary Welfare Allowance scheme. An Additional Needs Payment may also be available to people who have expenses that they cannot pay from their weekly income.

The Programme for Government includes a commitment to explore the option of giving self-employed workers access to Illness Benefit by means of making a higher PRSI contribution. My Department has commenced work in this regard and this proposal will be progressed over the lifetime of the Government.

Any changes to the current system would need to be considered in an overall policy and budgetary context.

I trust this clarifies the matter for the Deputy.

Comment on this