Written Answers. - Parliamentary Debates - Houses of the Oireachtas

Questions— 14 February 2012. Written Answers
to ensure self-employed persons have access to jobseeker’s benefit and allowance; and if she
will make a statement on the matter. [7592/12]
Minister for Social Protection (Deputy Joan Burton): Self-employed persons are liable for
PRSI at the Class S rate of 4% which entitles them to access long-term benefits such as State
pension (contributory) and widow’s, widower’s or surviving civil partner’s pension
(contributory). Ordinary employees who have access to the full range of social insurance
benefits pay Class A PRSI at the rate of 4%. In addition, their employers make a PRSI contribution
of 10.75% in respect of their employees, resulting in the payment of a combined 14.75%
rate per employee under full-rate PRSI Class A. (For employees earning less than €356 per
week, the rate of employer’s PRSI is 4.25%).
Any changes to the PRSI system to extend the full range of social insurance benefits, including
jobseeker’s benefit, to self-employed persons would have significant financial implications
and would have to be considered in the context of a much more significant rise in the rate of
contribution payable. I established the Advisory Group on Tax and Social Welfare last year to
meet the commitment made in the Programme for Government. The Advisory Group will,
inter alia, examine and report on issues involved in providing social insurance cover for selfemployed
persons in order to establish whether or not such cover is technically feasible and
financially sustainable. In addition, the Actuarial Review of the Social Insurance Fund, which
is due to be completed in mid-2012, will examine this matter.
Self-employed workers may establish eligibility to assistance-based payments such as jobseeker’s
allowance. They can apply for the means-tested jobseeker’s allowance if their business
ceases or if they are on low income as a result of a downturn in demand for their services. In
general, their means will take account of the level of earnings in the last twelve months in
determining their expected income for the following year and, in the current climate, account
is taken of the downward trend in the economy. As in the case of a non-self-employed unemployed
claimant of jobseeker’s allowance, the means of husband/wife, civil partner or cohabitant
will be taken into account in deciding on entitlement to a payment.
Social Insurance
302. Deputy John Lyons asked the Minister for Social Protection with regard to overcharging
under the health levy element of PRSI, her views on the timing of the announcement which
has meant that many of those overcharged in 2008 and previous years, missed the deadline of
31 December to claim a refund. [7629/12]
Minister for Social Protection (Deputy Joan Burton): The Department has received a very
high level of enquiries in relation to requests for refunds of the Health Contribution over the
last few weeks and I am pleased to be able to take this opportunity to clarify the position in
relation to this matter.
Since the introduction of the health contribution the Department of Social Protection has
refunded the contribution where it was found that the conditions for refund were met. Prior to
2010 there was no time limit on the period for which refunds were paid and any requests for
refunds submitted prior to 1 January 2010 were processed on that basis.
To clarify the position in relation to eligibility for a refund a person who earned more than
€26,000 in 2008, 2009 and 2010 was liable to pay the Health Contribution and is not due
a refund.
A person who earned less than €26,000 and never earned more than €500 in any one week
would not have been charged the Health Contribution and is not eligible for a refund.
457