Working for Work : Chapter 1 : Social Welfare Payments

Social Insurance Payments

People in employment, and self-employment, make Pay Related Social Insurance (PRSI) contributions which are deducted from their wages each week. These payments, or 'stamps' as they are traditionally known, are a means for people to insure themselves through the State, against any event that may cause them to be out of the workforce.

The Department of Social Protection keep a record of all social insurance payments, both paid and credited, under your Personal Public Service (PPS) number. Your PPS number is very important, so keep it safe, as you will need it when you are dealing with the Department.

Classes of Social Insurance Contributions

There are a total of 11 types of PRSI 'classes' in the Social Welfare system. Generally speaking, however, there are usually two main types of Social Insurance 'classes' relevant to people who are employed or self-employed:

PRSI Class A

This class of contribution covers employees under the age of 66 in industrial, commercial and service-type employment who have reckonable pay of ?38 or more per week from all employments as well as Public Servants recruited from 6 April 1995. Participants on Community Employment pay class A8 or A9 PRSI, but this still counts as a full Class A PRSI contribution. Participants on FÁS Training Courses do not pay PRSI contributions, but receive credited contributions for the duration of the training course.

Social Insurance Payments - Class A

 

PRSI Class S - This applies to self-employed people including certain company directors, people in business on their own account and people with income from investments and rents. It only covers a limited number of social insurance payments.

 

Social Insurance Payments - Class S

For information on the full range of PRSI Classes visit the Department of Social Protection website www.welfare.ie

Claiming a Social Insurance Payment

Qualifying for a payment

In order to qualify for a Social Welfare payment using your social insurance record you will need:

• A specific number of paid PRSI contributions from the time you first started working.
• A specific number of paid or credited PRSI contributions in the relevant tax year, also known as the Governing Contribution Year.
• To satisfy the conditions of the particular payment e.g. for Illness Benefit you must produce medical certificates, for Jobseeker's Benefit you must prove you are genuinely seeking work.

 

 

Relevant Tax Year/Governing Contribution Year

In order to qualify for a social insurance payment you must have the required number of PRSI contributions in the Relevant Tax Year/Governing Contribution Year (GCY). For all Social Insurance payments (benefit payments), except Invalidity Pension, the Relevant Tax Year/Governing Contribution Year is two years before the year in which you make your claim.

Benefit Year

Benefit Year	Contribution/Tax Year
1st Monday in January 2011	1st Jan. 2009 - 31st Dec 2009
1st Monday in January 2012	1st Jan. 2010 - 31st Dec 2010
1st Monday in January 2013	1st Jan. 2011 - 31st Dec 2011

 

Invalidity Pension:

The Relevant Tax Year/Governing Contribution Year for Invalidity Pension is the year before the benefit year. So, for example, claims made in 2011 will use 2010 as the Relevant Tax Year/Governing Contribution Year.

Types of Social Insurance Contributions

Credited PRSI Contributions

Credits or credited contributions are social insurance contributions given to qualified persons who are unable to continue making paid PRSI contributions in circumstances such as unemployment and illness. Their purpose is to help protect the social insurance entitlements of people during periods when they may not be able to make paid contributions. Credits can be very important to continue your PRSI record for future entitlement to some short term payments and pensions.

If, at any stage since starting work, you have no PRSI contributions paid or credited for two full tax years in a row, you cannot get credits until you return to work and pay PRSI contributions for at least 26 weeks. If contributions are paid at PRSI Classes S, J, K or M for 26 weeks then this would not count for the purposes of getting credits.

Voluntary PRSI Contributions

Voluntary Contributions are Pay Related Social Insurance (PRSI) contributions you can opt to pay if you are between the age of 16 and 66 and are no longer covered by compulsory PRSI by way of insurable employment, self-employment or credited contributions. Payment of Voluntary Contributions can help maintain or improve your contributory pension entitlements. They do not provide cover for any short term benefits such as Jobseekers, Illness, Maternity or Treatment Benefit.

You may choose to pay voluntary contributions, provided you meet certain conditions if you:

• are no longer covered by a PRSI scheme on a compulsory basis in Ireland,
• are no longer covered by a PRSI scheme on a compulsory or voluntary basis in any other EU country,
• are under age 66,
• satisfy qualifying conditions.

To become a voluntary contributor you must have paid at least 260 weeks PRSI in either employment or self-employment and apply within 12 months of the end of the contribution year during which you last paid compulsory insurance or you were last awarded a credited contribution and agree to pay voluntary contributions from the start of the contribution week that follows the week in which you leave compulsory insurance.

You can pay voluntary contributions as a lump sum before the end of a contribution year or by an instalment every three or six months during a contribution year. There are three different rates of voluntary contributions - High, Low and Special rate. Please contact the INOU for more information - (01) 856 0088.

Credits

Homemaker's Scheme

From 6 April 1994, if you have left the workforce for a long period of time to care for a child/ren under 12 years if age, you may be entitled to homemaker's credits for this period. You must have paid a PRSI contribution that would cover you for the State Pension (Contributory) and satisfy all scheme conditions.

Leaving Work due to Illness

If you are unfit for work because of illness, injury or disability, you may be entitled to 'credits'. 'Credits' are normally awarded automatically, if you are getting Illness Benefit, Invalidity Pension or Occupational Injury Benefit. If you work in the Public Service and pay PRSI at class B, C or D and you have to give up work because of ill-health, you can maintain your social insurance record by sending in medical certificates once a year. Contact the INOU for more information.

Pre-entry credits

are credited to a person's record when they first start paying PRSI.

Student credits

are awarded when a person re-enters full-time insurable employment after finishing school/college, subject to certain conditions.

The number of PRSI contributions required, both paid and credited, will vary according to the type of social insurance payment you apply for. Some social insurance payments only last for a fixed period - most are subject to tax (see Chapter 5).

Social insurance payments are not means tested for the person claiming. This means that your social insurance payment will not be affected by any savings or property that you may have. However, if you want to claim an increase for an adult or child dependant, your spouse/civil partner/cohabitant's means will determine whether or not you qualify for an increased payment.

Check with your local Social Welfare Office or the Department's Information Service, Tel: 1890 66 22 44, to see if you have the right amount of paid and credited contributions to qualify for different payments. Remember to have your PPS number ready when you make the call.

Last Updated: 08/09/2011 ^ back to top