45th Report presented by the

GOVERNMENT OF IRELAND

For the period from 1 July 2017 to 30 June 2018

in accordance with Article 74 of the European Code of Social Security

Ireland has accepted:

Part III               Sickness Benefit

Part IV               Unemployment Benefit

Part V                Old-Age Benefit

Part VII             Family Benefit

Part X                Survivor's Benefit                          


Principal Changes in Irish Social Security Legislation

Period: 1 July 2017 to 30 June 2018

Principal Changes to Primary Legislation

Social Welfare Act 2017

An Act to amend and extend the Social Welfare Acts; the Maternity Protection Act 1994; the National Training Fund Act 2000; and to provide for related matters.

Social Welfare Act 2017

                                                                                                                                               

                                                                       

Principal Changes to Secondary Legislation

Social Welfare (Consolidated Claims, Payments and Control) (Amendment) (No. 5) (Treatment Benefit) Regulations 2017

These Regulations seek to simplify the arrangements governing entitlement to Treatment Benefit.

It has been a requirement of the Treatment Benefit scheme that a claimant should have not less than 39 contributions (paid or credited) in the relevant contribution year, of which at least 13 must be paid contributions. The requirement that 13 must be paid contributions is being abolished in these Regulations.

These Regulations also provide that all claimants are now able to qualify for Treatment Benefit by virtue of having both 26 contributions in the relevant contribution year and 26 contributions in the preceding year — a measure which is designed to enable people who are job-sharing to qualify for the scheme.

Finally, these Regulations provide that where a person qualifies for Treatment Benefit at any age between 60 and pensionable age, he or she will remain qualified for life.

S.I. No. 381 of 2017

___________________________________________________________________________

Social Welfare Act 2016 (Section 9(b)) (Commencement) Order 2017

This Commencement Order brings section 9(b) of the Social Welfare Act 2016 into operation as and from 27 October 2017.

Section 9(b) of the Social Welfare Act 2016 provides for the expansion of the Treatment Benefit scheme, to provide for the re-introduction of the dental scale and polish and the restoration of the optical benefit scheme, including either free spectacles or a contribution towards upgraded spectacles to both employed contributors and self-employed contributors.

S.I. No. 463 of 2017

___________________________________________________________________________


Social Welfare (Temporary Provisions) Regulations 2017

These Regulations provide for the payment of a Christmas bonus to recipients of long-term social welfare payments and to recipients of domiciliary care allowance.

S.I. No. 523 of 2017

___________________________________________________________________________

Social Welfare Act 2016 (Section 4) (Commencement) Order 2017

This Order provides for the commencement of section 4 of the Social Welfare Act 2016 with effect from 1 December 2017.

Section 4 provides for the extension of eligibility for Invalidity Pension to people who are self-employed (i.e. PRSI Class S contributors).

S.I. No. 546 of 2017

___________________________________________________________________________

Social Welfare (Section 290A) (Agreement) Order 2017

Under the provisions of section 15 of the Social Welfare Act 2012, a new household budgeting arrangement was introduced whereby tenants of a housing authority or housing body who are in receipt of a social welfare payment could agree to have a portion of their social welfare payment withheld and paid to a local authority in respect of their rent.

This Order specifies that the Minister for Employment Affairs and Social Protection has entered into an agreement with An Post for the purposes of carrying out this household budgeting arrangement and that this agreement will have effect from 1 January 2018 to 31 December 2018.

S.I. No. 589 of 2017

___________________________________________________________________________

Water Services Act 2014 (Section 11) (Commencement) Order 2017

This Order provides for the commencement of section 11 of the Water Services Act 2014 with effect from 1 January 2018.

Section 11 provided for the deletion of Irish Water from the schedule of bodies specified in the Social Welfare Consolidation Act 2005 as having the power to use Personal Public Service numbers.

S.I. No. 611 of 2017

___________________________________________________________________________


Social Welfare Act 2017 (Section 3) (Commencement) Order 2017

This Commencement Order brings section 3 of the Social Welfare Act 2017 into effect as and from 1 January 2018.

Section 3 of the Social Welfare Act 2017 provides for an amendment to the definition of the term “share-based remuneration” in section 2(1) of the Social Welfare Consolidation Act 2005 to cater for the introduction of a new tax relief, the Key Employee Engagement Programme (KEEP).

S.I. No. 638 of 2017

___________________________________________________________________________

Social Welfare (Consolidated Supplementary Welfare Allowance) (Amendment) (No. 1) (Assessment of Means) Regulations 2018

These Regulations provide that any income received by way of ex gratia payments awarded by the Stardust Victims’ Compensation Tribunal will be disregarded in the assessment of means for the purposes of the Supplementary Welfare Allowance scheme.

S.I. No. 60 of 2018

___________________________________________________________________________

Social Welfare (Consolidated Claims, Payments and Control) (Amendment) (No. 1) (Assessment of Means) Regulations 2018

These Regulations provide that any income received by way of ex gratia payments awarded by the Stardust Victims’ Compensation Tribunal will be disregarded in the assessment of means for the purposes of weekly social assistance payments, increases for qualified adults and Working Family Payment.

S.I. No. 61 of 2018

___________________________________________________________________________

Social Welfare (Consolidated Claims, Payments and Control) (Amendment) (No. 2) (Change in Rates) Regulations 2018

These Regulations provide for - 

-           increases to the reduced personal rates of Illness Benefit, Jobseeker’s Benefit, Health and Safety Benefit, State Pension (Contributory), Widow’s (Contributory) Pension, Widower’s (Contributory) Pension, and Surviving Civil Partner’s (Contributory) Pension. The reduced rates applicable for qualified adults in such cases are also increased.

-           changes to the rates of tapered increases for qualified adults (whose income is between €100.01 and €310.00), of recipients of Illness Benefit, Jobseeker’s Benefit, Injury Benefit, Jobseeker’s Allowance, Pre-Retirement Allowance, Disability Allowance, Farm Assist and Invalidity Pension, and

-           changes to the tapered increases for qualified adults (whose income is between €100.01 and €310.00), of recipients who are on reduced rates of State Pension (Contributory), Illness Benefit and Jobseeker’s Benefit.

S.I. No. 102 of 2018

___________________________________________________________________________

Social Welfare (Consolidated Claims, Payments and Control) (Amendment) (No. 3) (Jobseeker’s Transitional Payment) Regulations 2018

These Regulations provide for an increase of €20, from €110 to €130, in the weekly earnings disregard in the case of recipients of the Jobseeker’s Transitional Payment in line with the increase provided for the One-Parent Family Payment in section 13 of the Social Welfare Act 2017.

S.I. No. 103 of 2018

___________________________________________________________________________


Social Welfare (Consolidated Supplementary Welfare Allowance) (Amendment) (No. 2) (Diet Supplement) Regulations 2018

These Regulations provide that the 2018 budgetary increases in Social Welfare payments shall not have the effect of reducing the rate of diet supplement below that which was payable before the said increase occurred.

S.I. No. 104 of 2018

___________________________________________________________________________

Social Welfare (Consolidated Contributions and Insurability) (Amendment) (No. 1) (Return of Contributions) Regulations 2018

The Social Welfare (Consolidated Contributions and Insurability) (Amendment) (No. 1) (Return of Contributions) Regulations 2015 prescribed the period 1 January 2015 to 31 December 2016 as the period during which the refunds of employer PRSI contributions would operate in respect of the employment of qualified seafarers.

These Regulations extend that period to 31 December 2022 and also retrospectively apply the refund provisions to 1 January 2017.

S.I. No. 105 of 2018

___________________________________________________________________________

Social Welfare (Rent Allowance) (Amendment) (No. 1) Regulations 2018

These Regulations provide for increases in the amount of means disregarded for people affected by the decontrol of rents for the Rent Allowance scheme with effect from 30 March 2018.

S.I. No. 106 of 2018

___________________________________________________________________________

Social Welfare (Consolidated Occupational Injuries) (Amendment) (No. 1) Regulations 2018

These Regulations provide for increases in the rate of Disablement Gratuity and the weekly rates of Disablement Pension where the degree of disablement ranges from 1 per cent to 19 per cent.

The Regulations also provide for an increase in the rate of Injury Benefit payable to persons under the age of sixteen.

S.I. No. 107 of 2018

______________________________________________________________________


Part II. Medical Care

This Part of the Convention has not been accepted by Ireland.
Part III. Sickness Benefit

Article 15

Sub-paragraph (a) applies.

There are no changes to the classes of employees covered for Illness Benefit since the last report. 

Table A8 of the Annual Statistical Report for 2016for the Department of Employment Affairs and Social Protection details the numbers and classes of insured persons.[1]

https://www.welfare.ie/en/pdf/DEASP_Annual_Statistics_Report_2016.pdf

Detailed explanations of the Classes can be accessed at: http://www.welfare.ie/en/downloads/SW19_17.pdf

Classes of employees who are covered for Illness Benefit:

·         Persons in Classes A, E, H and P– total 2,363,924 

2015

2016

Class A

2,282,700

2,356,360

Class E

158*

159

Class H

7,576

7,398

Class P

10

7

2, 290,444*

2,363,924

*The updated figures for 2015 are from the Department of Employment Affairs and Social Protection’s Annual StatisticsReport for 2015

Classes of employees not covered for Illness Benefit:

·         Persons in classes B, C, D and J – total 103,127

2015

2016

Class B

20,459

19,497

Class C

388

348

Class D

46,932

44,723

Class J

32,599

38,559

100,378

103,127

(Class J includes an unknown number of employees who are over pension age)

Total number of employees = 2,467,051 

Percentage insured for Illness Benefit in 2016 = 96%

The following Classes are not counted as employees:

·         Class K applies to Public Office holders, additional income of a self-employed person and other income such as rental, investment income, dividends and interest on deposits and savings;

·         Class S is for self-employed persons;

·         Class M applies to persons with no liability for a contribution;

·         Voluntary contributors are persons who have ceased employment but are contributing to maintain entitlements to long-term benefits such as pensions.


Article 16

The reference wage is selected in accordance with Article 66(4)(a)[2] of the code. The figure is based on RW-Eurostat figures provided in GC(2017)8 - The Report and Conclusions Concerning the Application of the European Code of Social Security and its Protocol. 

Illness Benefit Rate

Since 26 March 2018 the maximum personal rate of Illness Benefit has been increased from €193.00 to €198.00 per week. The maximum rate for a qualified adult has also increased from €128.10 to €131.40 per week, and the rate for a qualified child increased from €29.80 to €31.80 per week. 

The 2016 rate used in the comparison to the reference wage below includes the personal rate of €188.00, the rate for a qualified adultof €124.80 and the rate for a qualifiedchild of €29.80. The Child Benefit Rate for 2016 is €140 per month per child so the weekly amount for two children is €64.60. These rates have been increased in Budget 2017 and 2018.


Article 66 Title II

Reference wage / Illness Benefit (couple and 2 children)

Period

Wage

All'nce

*€

Total

Benefit

All'nce

** €

Total

%

2015

716.78

62.31

779.09

372.40

62.31

434.71

56

2016

739.54

64.60

804.14

372.40

64.60

437.00

54

* The family allowances for a worker in this column include Child Benefit and the rate of Working family Payment (formerly, Family Income Supplement (FIS)) appropriate to a family with this level of income.  In 2015/2016 the level of earnings exceeded the threshold for the working Family Payment allowance and so this figure includes Child Benefit only, payable at €135 in 2015 and €140 in 2016  per month for each child.

** The family allowance for a beneficiary in this column includes Child Benefit only, although payment of the Working family Payment (where already in payment) would continue for the first 6 weeks of illness.


Article 66 Title V

Reference wage (single person, male) /Maximum weekly rate of Illness Benefit (single person, male or female)

Period

Wage €

Benefit

%

2015

716.78

188.00

26

2016

739.54

188.00

25

Full details of payment rates are published on the Department of Employment Affairs and Social Protection’s website:

http://www.welfare.ie/en/Pages/SW19_Post_2003.aspx

Article 17

There are no changes to the conditions for receipt of Illness Benefit since the last report.

Illness Benefit is a payment made to insured people who are unable to work due to illness and who satisfy certain Pay Related Social Insurance (PRSI) contribution conditions. 

Conditions for receipt of Illness Benefit

1.         Be unable to work due to Illness

Illness Benefit is paid for each day on which an insured person is unable to work due to illness. In legislation this day is defined as a “day of incapacity for work”.  Any 3 days of incapacity for work, whether consecutive or not, within a period of 6 consecutive days are treated as a period of incapacity for work and any 2 such periods, not separated by more than 3 days, are treated as one period of incapacity for work.

2.         Be under the Pensionable Age

An insured person must be under the pensionable age (currently 66) to receive Illness Benefit.[3]

3.         Satisfy the Contribution Conditions

To qualify for payment of Illness Benefit a person must have 104 weeks of paid contributions since starting work and satisfy either (a) or (b):

(a)    39 weeks of PRSI contributions paid or credited in the relevant tax year, of which 13 must be paid contributions. If they do not have 13 paid contributions in the relevant tax year, then 13 paid contributions in one of the following tax years can be used instead:

·         either of the two tax years before the relevant tax year;

·         or the last complete tax year (before the year in which the claim for Illness Benefit   begins);

·         or the current tax year;

or

(b)   26 weeks of PRSI contributions paid in the relevant tax year, and 26 weeks of PRSI contributions paid in the tax year immediately before the relevant tax year.

The relevant tax year is the second last complete tax year before the year in which the claim for Illness Benefit begins.

   

Article 18

Duration of Payment

There are no changes to the duration of payment since the last report.

If a person satisfies the PRSI conditions and qualifies for payment of Illness Benefit they may get Illness Benefit for a maximum of:

      or

Illness Benefit is paid on a 6-day week basis (Monday to Saturday) and no payment is made for the first 6 days of a claim.

If a person does not qualify for payment of Illness Benefit due to insufficient PRSI contributions, they may be awarded credited contributions to maintain the continuity of their social insurance record, subject to the receipt of medical certificates for as long as they are unfit for work.

Requalification for Illness Benefit

If Illness Benefit exhausts after 624 payment days (2 years) then a person must have a minimum of 13 reckonable PRSI contributions paid before he or she may requalify for Illness Benefit. (All other qualifying conditions must also be satisfied).

If a person is on Illness Benefit and their entitlement exhausts after 365 paid days he/she may requalify with fewer than 13 contributions, if additional contributions bring his or her total PRSI contributions paid up to 260, (if a person has had 250 contributions when his/her Illness Benefit expires, he/she could work and pay 10 contributions to requalify).

Suspension of Benefit

Section 46 of the Social Welfare Consolidation Act 2005 (as amended) sets out the disqualifications from Illness Benefit.  Illness Benefit payment may be stopped if a claimant does not observe certain conditions while receiving Illness Benefit.  These conditions are thatthey must not:

·      become incapable of work through their own misconduct;

·      fail, without good reason, to attend a medical assessment by a Medical Assessor of the Department of Social Protection;

·      fail to obey their doctor's instructions;

·      behave in a way that is likely to delay their recovery;

·      fail to see any Official from the Department of Social Protection and answer reasonable enquiries concerning their claim.


Part IV. Unemployment Benefit

Article 20

There have been no changes to the qualifying conditions since the last report.

Jobseeker's Benefit is a weekly payment to people who are out of work and covered by social insurance (PRSI).  The Jobseeker’s Benefit week is based on a 7 day week. Sunday is treated the same as any other day in the week; as a day of employment or unemployment as appropriate.

The contingency is satisfied by a person who has experienced a substantial loss of employment and as a result is fully unemployed, or unemployed for at least 4 days in 7.  A person must also be under 66 years of age, capable of work, and be available for and genuinely seeking full-time employment.

Article 21

Sub-paragraph(a) applies.

There have been no changes to the classes of employees covered for Jobseeker’s Benefit since the last report. 

Table A8 of the Annual Statistical Report for 2016for the Department of Employment Affairs and Social Protection details the numbers and classes of insured persons.[4]

https://www.welfare.ie/en/pdf/DEASP_Annual_Statistics_Report_2016.pdf

 

Classes of employees who are covered for Jobseeker’s Benefit:

·         Persons in Classes A, H and P – total 2,363,765  

Classes of employees not covered for Jobseeker’s Benefit:

·         Persons in classes B, C, D, E and J – total 103,286  (Class J includes an unknown number of employees who are over pension age)

Total number of employees= 2,467,051 

Percentage insured for Jobseeker’s Benefit in 2016 = 96%

The following Classes are not counted as employees:-

·         Class K applies to Public Office holders, additional income of a self-employed person and other income such as rental, investment income, dividends and interest on deposits and savings;

·         Class S is for self-employed persons;

·         Class M applies to persons with no liability for a contribution;

·         Voluntary contributors are persons who have ceased employment but are contributing to maintain entitlements to long-term benefits such as pensions.

Article 22

The reference wage is selected in accordance with Article 66(4)(a)[5]of the code.   The figure is based on RW-Eurostat figures provided in the GC(2017)8 - The Report and Conclusions Concerning the Application of the European Code of Social Security and its Protocol. 

Rate of Benefit

Budget 2018 introduced changes to the rates of Jobseeker’s Benefit.   From 22 March 2018, the maximum personal rate of Jobseeker’s Benefit increased from €193.00 per week to €198.00 per week. The maximum rate of increase for a qualified adult increased from €128.10 per week to €131.40 and the increase for a qualified child increased from €29.80 per week to €31.80.

The 2016 rate used in the comparison to the reference wage below includes the personal rate of €188.00, the rate for a qualified adultof €124.80 and the rate for a qualifiedchild of €29.80. The Child Benefit Rate for 2016 is €140 per month per child so the weekly amount for two children is €64.60. These rates have been increased in Budget 2017 and 2018.


Article 66 Title II

Reference Wage / Jobseeker’s Benefit (couple and 2 children)

Period

Wage

All'nce

*€

Total

Benefit

All'nce

** €

Total

%

2015

716.78

62.31

779.09

372.40

62.31

434.71

56

2016

739.54

64.60

801.85

372.40

64.60

437.00

54

*The family allowances for a worker in this column include Child Benefit and the rate of Working family Payment (formerly, Family Income Supplement (FIS)) appropriate to a family with this level of income.  In 2015/2016 the level of earnings exceeded the threshold for the working Family Payment allowance and so this figure includes Child Benefit only, payable at €135 in 2015 and €140 in 2016 per month for each child.

** The family allowance for a beneficiary in this column includes Child Benefit only.

Article 66 Title V

Reference Wage (single person, male) / Maximum weekly rate of Jobseeker’s Benefit (single person, male or female)

Period

Wage €

Benefit

%

2015

716.78

188.00

26

2016

739.54

188.00

25

Full details of rates are published on the Department of Employment Affairs and Social Protection’s website:

http://www.welfare.ie/en/Pages/sw19.aspx

Article 23

Conditions for receipt of Jobseeker’s Benefit

There have been no changes to the conditions for receipt of Jobseeker’s Benefit since the last report.

To qualify a person must satisfy the following two conditions:-

1.         At least 104 weeks PRSI paid since employment commenced;

and

2 (a).    Have 39 weeks PRSI paid or credited in the relevant tax year (a minimum of 13 weeks must be paid contributions*);

or

2 (b).    Have 26 weeks PRSI contributions paid in the relevant tax year and 26 weeks PRSI contributions paid in the tax year immediately before the relevant tax year.

* If the 13 contributions required above are not paid in the relevant tax year, 13 contributions must have been paid in any of the following years:-

The Relevant Tax Year is the second last complete tax year before the year in which the claim is made. For example, for claims made in 2018, the Relevant Tax Year is 2016.

Earnings

The amount of the person's average reckonable weekly earnings in the Relevant Tax Year (RTY) determines the rate of benefit payable.  For the full rate of Jobseeker’s Benefit to be paid, the earnings in the RTY, divided by the number of qualifying contributions in that year, must be above the prescribed amount.

Reduced rates of Jobseeker’s Benefit are payable where the average reckonable weekly earnings are less than the prescribed amount.

Reckonable weekly earnings for this purpose are earnings derived from insurable employment.  Where a person had no earnings (only credits) or weekly earnings of less than €32.00 in the RTY, a notional earnings figure of €32.00 is applied.

To calculate reckonable weekly earnings the total reckonable gross earnings in the RTY is divided by the number of qualifying contributions (Class A, H or P) paid in that RTY.

Article 24

Duration of Payment

Jobseeker’s Benefit is not payable for the first 3 days of unemployment.  A person may be paid benefit for up to 9 months (234 days) if they have 260 or more contributions paid.  If a person has between 104 and 259 inclusive paid PRSI contributions, Jobseeker’s Benefit is payable for 6 months (156 days).

A person who has exhausted their entitlement to Jobseeker's Benefit may re-qualify by working and paying the appropriate PRSI contributions for at least 13 weeks and if they satisfy the second contribution condition[6]in the RTY on the date of a new Jobseeker’s Benefit claim and all other statutory conditions.

Over 65 and under 66

Persons aged 65 years where their entitlement to benefit has exhausted may receive Job Seekers Benefit payment beyond 234 days (9 months) or 156 days (6 months) whichever is applicable up to the date on which they reach pensionable age (66 years) provided they have not less than 156 paid contributions since entering employment and they satisfy the second contribution condition.  This is to have 39 weeks PRSI paid or credited in the relevant tax year (a minimum of 13 weeks must be paid contributions) or have 26 weeks PRSI contributions paid in the relevant tax year and 26 weeks PRSI contributions paid in the tax year immediately before the relevant tax year.


Suspension of Benefit

There have been no changes to the conditions for the suspension of benefits since the last report.  Payment can be suspended in certain circumstances as follows:-

Not available for and genuinely seeking work

A person must be available for work and actively looking for work to qualify for Jobseeker's Benefit.  They can be regarded as not being available for work and not entitled to Jobseeker's Benefit, if they put unreasonable restrictions on the following:-

In any case where a Department of Employment Affairs and Social Protection Deciding Officer considers that a person has placed unreasonable restrictions on the above, payment can be suspended.   A person has the right to appeal any such decision.

Loss of employment

A person may be disqualified from getting Jobseeker's Benefit for up to 9 weeks if they:-

·         Amount of Redundancy Payment

·         Period of Disqualification

€50,000.00 - €55,000

1 Weeks

€55,000.01 - €60,000

2 Weeks

€60,000.01 - €65,000

3 Weeks

€65,000.01 - €70,000

4 Weeks

€70,000.01 - €75,000

5 Weeks

€75,000.01 - €80,000

6 Weeks

€80,000.01 - €85,000

7 Weeks

€85,000.01 - €90,000

8 Weeks

€90,000.01 and over

9 Weeks

A person who is out of work because they are participating in an industrial dispute, is not considered to be unemployed, and is therefore not entitled to Jobseeker's Benefit. Their family could, however, qualify for assistance under the basic social assistance scheme: Supplementary Welfare Allowance (SWA).  


Part V. Old Age Benefit

Article 26

The State Pension (Contributory) is payable at age 66 years for those who qualify based on social insurance contributions.  As part of the legislation introduced following the launch of Ireland’s National Pensions Framework, the pension age will rise to 67 in 2021 and 68 in 2028.

In 2015[7], the number of residents aged 66 and over was 593,411.  The population aged 15-65 was 3,117,746.  Therefore the proportion of the population aged 66 and over amounts to 19% (and rising as the population is aging).  This exceeds the required minimum of 10% set out in Article 26(2) of the European Code of Social Security. 

Article 26(3) does not apply for State Pension (Contributory).

Article 27

Sub-paragraph (a) applies.

There are no changes to the classes of employees covered or the percentage insured since the last report. 

Table A8 of the Annual Statistical Report for 2016for the Department of Employment Affairs and Social Protection details the numbers and classes of insured persons.[8]

https://www.welfare.ie/en/pdf/DEASP_Annual_Statistics_Report_2016.pdf

Classes of employees covered for State Pension (Contributory)

·         Persons in Classes A, E and H– total 2,363,917  

 

Classes of employees not covered for State Pension (Contributory)

·         Persons in classes B, C, D, P and J – total 103,134

(Class J includes an unknown number of employees who are over pension age)

Total number of employees= 2,467,051

Percentage insured for State Pension (Contributory) in 2016 = 96%

The following Classes are not counted as employees:

·         Class K applies to Public Office holders, additional income of a self-employed person and other income such as rental, investment income, dividends and interest on deposits and savings;

·         Class S is for self-employed persons;

·         Class M applies to persons with no liability for a contribution;

·         Voluntary contributors are persons who have ceased employment but are contributing to maintain entitlements to long-term benefits such as pensions.

Article 28

The reference wage is selected in accordance with Article 66(4)(a)[9] if the code.  The figure is based on RW-Eurostat figures provided in the GC(2017)8 - The Report and Conclusions Concerning the Application of the European Code of Social Security and its Protocol. 

Rate of Benefit

The 2015 rate used in the comparison to the reference wage below includes the personal rate of €230.30 and the qualified adult rate of €206.30. In 2016 the maximum personal rate of State Pension (Contributory) was €233.30 per week and the maximum rate of qualified adult allowancewas €209.00 per week.  Budget 2017 increased these rates to €238.30 and €213.50 respectively. Budget 2018 increased the contributory pension rate to €243.30 and and rate for a qualifiedadult to €218. The living alone allowance continues to be €9.00 per week.

Article 66 Title III

Reference Wage / State Pension (Contributory)

(Couple – both aged between 66 and 80.  No family allowance payable)

Period

Wage

Benefit

%

2015

716.78

436.60

61

2016

739.54

442.30

60

Article 66 Title V

Reference Wage (single person, male) /

Maximum weekly rate of Pension (single person, male or female)

Period

Wage €

Benefit

%

2015

716.78

230.30

32

2016

739.54

233.30

31

Full details of rates are published on the Department of Social Protection’s website:

http://www.welfare.ie/EN/Publications/sw19/Pages/sw19_intro.aspx

Article 65 Title VI

Comparison of Benefit Rates with Cost of Living and Average Wages

Year

CPI (base 2011 =100) (a)

Average earnings

Old Age Pension

(couple + 2 children)

Old Age Benefit (couple with no children)

February 2017

101.30 (a)

€723.08 (b)

511.40

451.80

February

2018 (c)

101.80 (d)

742.19 (e)

511.40 (c)

451.80 (c)

Percentage change

+.5

+2.6

Nil

Nil

(a) http://www.cso.ie/en/releasesandpublications/er/cpi/consumerpriceindexfebruary2017/

(b) http://www.cso.ie/en/releasesandpublications/er/elcq/earningsandlabourcostsq42016finalq12017preliminaryestimates/

(c) Rates increased on 30 March 2018. Figures for Pension would be (Couple + 2 children - €524.90, and with no children €461.30

(d) http://www.cso.ie/en/releasesandpublications/er/cpi/consumerpriceindexfebruary2018/

(e) http://www.cso.ie/en/releasesandpublications/er/elcq/earningsandlabourcostsq42017finalq12018preliminaryestimates/

Additional Benefits

Recipients of State Pension (Contributory) may also, depending on their circumstances, be eligible for secondary benefits such as the Living Alone Allowance (a €9 per week increase to their weekly payment), the Fuel Allowance (€22.50 per week for the duration of the fuel season – increased to 27 weeks in 2018) and the Household Benefits Package (€35 per month towards the claimant’s gas/electricity costs, and the free television licence worth €160 per annum).  There is an additional increase of €12.70 for people aged 66 and over living on certain offshore islands.  Recipients are eligible for the Free Travel Pass, which entitles the bearer to free travel on public transport and certain private services in Ireland.  Recipients are automatically paid an extra allowance of €10 per week when they reach 80 years of age. Where they do not own their own home and have rental costs, they may be entitled to Rent Allowance (the amount paid varies with the rent payable).

Article 29

Conditions for receipt of State Pension (Contributory)

There are no changes to the conditions for receipt of the State Pension (Contributory) since the last report. 

If pension age is reached on or after 6 April 2012, 520 (10 years) paid contributions are required. In this case, only 260 of the 520 contributions may be voluntary contributions.  However, if voluntary contributions were made on or before April 6 1997 with a yearly average of 20 contributions, the requirement may be satisfied if there are a total of 520 contributions (of which 156 are paid full-rate employment contributions, with the balance being full-rate voluntary contributions).

If pension age was reached on or after 6 April 2002, a total of 260 paid contributions were required (effectively 5 years contributions but they need not be consecutive).

If pension age was reached before 6 April 2002, 156 qualifying paid contributions were required (a total of 3 years but they did not have to be consecutive). This means that the insured person must have paid full-rate contributions prior to 1979 and at Class A, E, F, G, H, N and S since then.[10]


Part VI. Work Accident and Occupational Disease Benefit

This Part of the Convention has not been accepted by Ireland.


Part VII. Family Benefit

Articles 40 to 41

There are no changes to report in respect of these Articles. 

Child Benefit is payable to the parents or guardians of children under 16 years of age, or under 18 years of age if the child is in full-time education, Youthreach training or has a disability.  Child Benefit is not paid in respect of 18 year olds.

Child Benefit is payable at one and a half times the appropriate monthly rate for twins, and at double the appropriate monthly rate for triplets or other multiple births, provided at least three of the children remain qualified.


Article 42

Child Benefit

The Child Benefit rate remains at €140 per month as set out in the following table.

Number of children

2018 monthly rate

2018 annual rate

1 child

€140

€1,680

2 children

€280

€3,360

3 children

€420

€5,040

4 children

€560

€6,720

5 children

€700

€8,400

6 children

€840

€10,080

7 children

€980

€11,760

8 children

€1,120

€13,440

One-Parent Family Payment (OFP)

One-Parent Family Payment (OFP) is a payment for men and women under 66 who are bringing children up without the support of a partner. To get this payment a person must meet certain conditions and must satisfy a means test.  The maximum age of the youngest child for receipt of One-Parent Family Payment is 7 years for all recipients, save the exemptions outlined below.

Exceptions:

         the 16th birthday of the child in respect of whom DCA is in payment;

or

         when the youngest child reaches the relevant qualifying age limit.

Post One-Parent Family Payment Income Supports

When One-Parent Family Paymententitlement ends, a person may qualify for other income support payments including the following:

·      A person in employment of 19 hours or more per week (38 hours per fortnight), may apply for the Working Family Payment (WFP).  The Working Family Payment was formerly known as Family Income Supplement (FIS).  If already in receipt of WFP, the amount of this supplement may, in certain circumstances, be increased when One-Parent Family Payment ends.  WFP recipients are also entitled to the Back to Work Family Dividend (BTWFD). The BTWFD allows recipients to retain the increase for the qualified child portion of their former One-Parent Family Payment, which equals €31.80 per week per child (up to a maximum of €127.20 per week for four children), for two years, with full payment of the qualified child increase (worth €1,653.60 per child) in the first year and 50% entitlement (worth €826.80 per child) in the second year. 

·         Lone parents with a youngest child aged 7 to 13 years (inclusive) can transition to the Jobseeker’s Transitional Payment which was introduced in 2013.  This payment exempts such persons from having to be available for and genuinely seeking full-time work, thereby acknowledging that these parents are caring for young children.  They can work part-time, for example mornings only, if they wish and still receive a payment subject to means. They must continue to be a lone parent to receive this payment.  Qualifying for this payment provides access to a one-to-one meeting with an activation case officer and the associated work activation supports.  The BTWFD will allow recipients to retain the increase for their qualified child if they move off this scheme to employment or self-employment.  It is payable for twoyears, as above.

·         Lone parents whose youngest child is 14 or over can apply for either Jobseeker’s Benefit or Jobseeker’s Allowance.  They must be unemployed, capable of work, and genuinely seeking full-time work. Qualifying for this payment provides access to a wide range of additional work activation supports.  The BTWFD allows recipients to retain the increase for their qualified child if they move off this scheme to employment or self-employment and ispayable for two years.

EnhancedActivation Supports

All lone parents on a Jobseeker’s Allowance or Jobseeker’s Transitional Payment gain enhanced access to activation supports.

Jobseeker’s Transitional Payment recipients receive a one-to-one meeting with a case officer who assists them to produce a personal development plan and guides them towards appropriate education, training and employment opportunities.  While the person is on the Jobseeker’s Transitional Payment, this support is available and is not limited to the 12 month engagement that applies for other jobseekers following their one to one meeting.  Through the Jobseeker’s Transitional Payment, lone parents with children aged between 7 and 13 years are provided with a very long transition period of seven years within which to engage with the Department of Employment Affairs and Social Protection Intreo service.[11]  The aim of this broader support is to improve the individual’s employment prospects.

The Department of Employment Affairs and Social ProtectionIntreo service operates a range of employment support services that are designed to encourage and assist income support recipients of working age, including lone parents, to return to work.  These services are provided through a network of locally based case officers who work with recipients to help identify appropriate training or development programmes that will enhance their skills. They work in close co-operation with other agencies and service providers including SOLAS (the Further Education and Training Authority in Ireland), the local education and training boards, other education and training providers, and the local community and voluntary sector.

Former One-Parent Family Payment recipients on a Jobseeker’s Allowance payment i.e. those with a youngest child 14 years of age or older, are subject to the standard activation process which includes a group engagement with a case officer followed by appropriate supports. 

Budget 2018 measures relevant to One-Parent Family Payment

Working Family Payment Rates

The 2017 and 2018 weekly income thresholds for receipt of Working Family Payment are set out in the following table.  

No. of Children

2017

2018

1

511

521

2

612

622

3

713

723

4

834

834

5

960

960

6

1,076

1,076

7

1,212

1,212

8+

1,308

1,308

The rate of Working Family Payment payable is 60% of the net family income (gross pay minus tax, employee PRSI, superannuation, and Universal Social Charge) and the income limit that applies to the family circumstances. The minimum weekly Working Family Payment, payable to those who would otherwise qualify for a lesser rate, is €20.00.

Article 43

There are no changes to report under this Article.

Article 44

Child Supports 2016

The following statistics relate to the range of child supports provided by the Department of Employment Affairs and Social Protection in 2016:

Total amount of Child Benefit paid:                                                              €2,078 million

Total amount of Working Family Payment paid:                                              €415 million

Back to School Clothing and Footwear expenditure:                                         €40 million       

Total amount of above:                                                                                   €2,533 million

Total number of children of all residents within qualifying age range:                  1,194,869

The reference wage[12] for 2016 is €739.54 per week or €38,604 per annum.

Total expenditure of €2,533 million is approximately 5.5% of €38,604 x 1,194,869 (total number of children of all residents within the qualifying age range).
Article 45

Suspension of Benefit

Section 334(2) of the Social Welfare Consolidation Act 2005 (as amended) provides that where a question arises as to whether the conditions for the receipt of Child Benefit are fulfilled, and initial enquiries fail to establish continuing entitlement, payment may be suspended in whole or in part until the question has been decided.

This will be done for example if there is reason to believe that:

•           either the recipient or child is no longer alive, or is not resident at the given address;

•           the child is no longer living with the recipient;

•           the recipient or child has left the State;

•           the child, being over 16 years of age, is no longer in full-time education or incapacitated.

Disqualifications from One-Parent Family Paymentare provided for in Part 3, Chapter 7 of the Social Welfare Consolidation Act, 2005 and Part 3, Chapter 3, Articles 124 to 130 of Part III of the Social Welfare (Consolidated Claims, Payment and Controls) Regulations, 2007 (S.I. No. 142 of 2007) as amended:

                     One-Parent Family Paymentis not payable while a person is in a relationship and cohabiting with someone of the opposite or same sex; 

                     One-Parent Family Paymentis not payable to anyone residing outside the State, except for EEA nationals who are working in Ireland and qualify under the provisions of EU Regulation 883/2004, Article 7 and Articles 11 to 16.  A person may however have an absence of up to a maximum of 3 weeks outside the State for the purposes of holidays, attending a funeral etc. and receive payment.  The Department of Employment Affairs and Social Protection must be notified in advance of the intention to leave the State and the reason for the absence;

                     A person is disqualified from receiving One-Parent Family Payment for any period during which he or she is undergoing penal servitude, imprisonment or detention in legal custody.  The increase for a relevant child may be paid to another person in certain circumstances;

                     If a person fails to make a claim within the prescribed limit they will be disqualified from receiving payment in respect of any period prior to the date of claim.  This also applies to making a claim for any increase in payment or allowances, for example, a claim for an increase in payment in respect of an additional child.  However, where a person can prove to the satisfaction of a Department of Employment Affairs and Social Protection Deciding or Appeals Officer that entitlement existed and that there was good cause for the delay in making a claim for OFP, payment may be made for a period of up to 6 months before the date of the claim.  Also where a claim for payment or an increase in payment is made outside the prescribed time, the period for which payment is made can be extended where the delay in making the claim is due to incorrect information being given by the Department of Employment Affairs and Social Protection, or the person being so incapacitated that she or he was unable to pursue the claim, or a force majeure.

Where the One-Parent Family Paymentceases due to the age of the youngest child / relevant child, the Working family Payment rate may be reviewed.


Part VIII. Maternity Benefit

This Part of the Convention has not been accepted by Ireland.


Part IX. Invalidity Benefit

This Part of the Convention has not been accepted by Ireland.


Part X. Survivor’s Benefit    

Article 60

There is no change to report in respect of this Article.

Article 61

Sub-paragraph(b) applies.

Table A8 of the Annual Statistical Report for 2016for the Department of Employment Affairs and Social Protection details the numbers and classes of insured persons.[13]

https://www.welfare.ie/en/pdf/DEASP_Annual_Statistics_Report_2016.pdf

Classes of employees and self-employed who are covered for Widow's/Widower's, or Surviving Civil Partner’s (Contributory) Pension

Persons in Classes A, B, C, D, E, H[14], S and Voluntary Contributions – total 2,752,392

Estimate of total population in 2016: 4,761,865

Percentage insured for Widow's/Widower's, or Surviving Civil Partner’s (Contributory) Pension= 58 %

The following Classes are not included:

·         Class K applies to Public Office holders, additional income of a self-employed person and other income such as rental, investment income, dividends and interest on deposits and savings;

·         Class M applies to persons with no liability for a contribution.

Article 62

Rates of Payment

In 2018 the maximum weekly personal rate for Widow’s/Widower’s, or Surviving Civil Partner’s (Contributory) Pension aged under 66 increased by €5 to €203.50. The maximum weekly personal rate for recipients aged 66 and under 80 increased by €5 to €243.30 which increases to €253.30 where the beneficiary is aged over 80. The rate for a qualified child increased by €2 to €31.80 weekly.

The 2016 rate used in the comparison to the reference wage below includes the personal rate of €193.5 and the qualified child rate of €29.80.

 

Duration of Payment

The pension remains payable while the person remains widowed or a surviving civil partner. If they re-marry or enter a new civil partnership or start to cohabit i.e. live with someone as a couple, it is no longer payable. A person may get increases for qualified children with their pension - these remain payable while the child is aged under 18 and they may then be continued until age 22 if the child is in full-time education.

Article 66 Title IV

Weekly rate of Widow’s, Widower’s or Surviving Civil Partner (Contributory) Pension / Reference Wage (widow under 66 years of age and 2 children)

Period

Wage

All'nce

*€

Total

Benefit

All'nce

**€

Total

%

2015

716.78

62.31

779.09

253.10

62.31

315.41

40

2016

739.54

64.60

804.14

253.10

64.60

317.70

40

* The family allowances for a worker in this column include Child Benefit and the rate of Working family Payment (formerly, Family Income Supplement (FIS)) appropriate to a family with this level of income.  In 2015/2016 the level of earnings exceeded the threshold for the working Family Payment allowance and so this figure includes Child Benefit only, payable at €135 in 2015 and €140 in 2016 per month for each child.

** The family allowance for a beneficiary in this column includes Child Benefit only.


Article 66 Title V

Reference wage / Weekly rate of Widow’s, Widower’s or Surviving Civil Partner (Contributory) Pension (single person, male or female)

Period

Wage

Benefit

%

2015

716.78

193.50

27

2016

739.54

193.50

26

Full details of rates are published on the Department of Social Protection’s website:

http://www.welfare.ie/EN/Publications/sw19/Pages/sw19_intro.aspx

Article 65 Title VI

Comparison of Benefit Rates with Cost of Living and Average Wages

Year

CPI (base 2011 =100) (a)

Average earnings

Old Age Pension

(couple + 2 children)

Old Age Benefit (couple with no children)

February 2017

101.30 (a)

€723.08 (b)

511.40

451.80

February

2018 (c)

101.80 (d)

742.19 (e)

511.40 (c)

451.80 (c)

Percentage change

+.5

+2.6

Nil

Nil

(a) http://www.cso.ie/en/releasesandpublications/er/cpi/consumerpriceindexfebruary2017/

(b) http://www.cso.ie/en/releasesandpublications/er/elcq/earningsandlabourcostsq42016finalq12017preliminaryestimates/

(c) Rates increased on 30 March 2018. Figures for Pension would be (Couple + 2 children - €524.90, and with no children €461.30

(d) http://www.cso.ie/en/releasesandpublications/er/cpi/consumerpriceindexfebruary2018/

(e) http://www.cso.ie/en/releasesandpublications/er/elcq/earningsandlabourcostsq42017finalq12018preliminaryestimates/

 Article 63

Social InsuranceContributions (PRSI)

There are no changes to the contribution conditions since the 44th report.  To qualify for a Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension, either the person or his or her late spouse or civil partner must have a certain number of PRSI contributions. All the PRSI requirements must be met on one person's record as it is not possible to combine the contributions of both spouses or civil partners. All must have been made before the death of the spouse or civil partner.  Virtually all PRSI contributions count towards this pension, including contributions paid by public servants and persons who are self-employed. The person or their spouse or civil partner must have:

and

or

Contributions paid in other EU Member States

If a person was previously insurably employed in a country covered by EU Regulations or in a country with which Ireland has a Bilateral Social Security Agreement and had paid at least one full rate PRSI contribution in Ireland, the person may combine his or her insurance record in that country with the Irish PRSI contributions to help qualify for Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension.


Article 64

Other Income

Since the Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension is based on social insurance contributions, a person may earn any amount of money from any other source and still remain entitled to this pension. While taxable, if it is the beneficiary’s only source of income it is unlikely that the person would have to pay tax.

It is not possible to get a Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension at the same time as a State Pension (Contributory). If a person is entitled to both payments, they may choose whichever is the more advantageous.

A person can get a Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension and half-rate Maternity Benefit, or half-rate Paternity Benefit, or Health and Safety Benefit, or Adoptive Benefit, or Carer's Allowance if the person also qualifies for one of these payments.

 Suspension of Benefit

Suspension of Benefit is provided for under sections 124, 247A, 247B and 249(1) the Social Welfare Consolidation Act 2005 (as amended).  Any of the following events mean that a person is no longer entitled to pension:

·         Cohabitation with another person (for so long as they continue to cohabit);

·         Remarriage or registration of a Civil Partnership (unless and until such time as their second spouse/civil partner dies);

·         Receipt of a Training Allowance from SOLAS (the Further Education and Training Authority

·         Participation in a Community Employment Scheme (for the duration of the Scheme); or

·         Imprisonment (for the duration of their imprisonment);

The following would mean an increase for a qualified child may no longer be payable under sections 2 and 127:

·           Death of the qualified child;

·           A qualified child no longer living with or being maintained by the person;

·           A qualified child who reaches 18 years (or between 18 and 22) and is not continuing in full-time education;

·           Imprisonment or detention of a qualified child; or

·           A qualified child leaves the State.


Parts XII – XIII. Equality and Common Provisions

Article 68

Provisions for the suspension of benefits are set out in the individual Parts of the Report.

Article 69

Any person who is unhappy with a decision in relation to their benefit entitlements has a right of appeal to the Social Welfare Appeals Office.  This applies to Illness Benefit, Jobseeker’s Benefit, State Pension (Contributory), Widow’s, Widower’s or Surviving Civil Partner’s (Contributory) Pension.  It also applies to Child Benefit, One-Parent Family Payment, Back to Work Family Dividend and the Working family Payment.

The Appeals Office operates independently of the Department of Employment Affairs and Social Protection to provide an appeals service to persons who are dissatisfied with decisions of Deciding Officers or Designated Persons on questions relating to entitlement to social welfare payments and insurability of employment under the Social Welfare Consolidation Act 2005 (as amended).  The Appeals Officer will make a decision based on the evidence available and taking account of the scheme qualifying conditions which are set out in legislation. 

Information on the appeals process is available via: www.socialwelfareappeals.ie/your_appeal/


Article 70

The following gives expenditure for 2016 on each of the schemes dealt with in this report.

Scheme

Expenditure for 2015

€000**

Expenditure for 2016

€000

Illness Benefit

620,007

597,460

Jobseeker’s Benefit

387,152

355,806

State Pension (Contributory)

4, 475,691

4, 662,224

Child Benefit*

1, 990,299

2, 078,111

Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension

1, 422,098

1, 437,022

TOTAL

8,895,247**

9,130,623

*Family Benefits are funded by the Exchequer and not from the Social Insurance Fund.         

**The updated figures for 2015 are fromthe Department of Employment Affairs and Social Protection’s Annual StatisticsReport for 2015.

Total expenditure on all social welfare schemes in 2016 amounted to €19,967,000 million, of which €11,350,000 million was met from taxation and €8,617,000 million from the Social Insurance Fund.

Article 71

The administration of the social welfare system is managed by the Department of Employment Affairs and Social Protection which is a Government Department. As part of the Budget deliberations, the Minister for Employment Affairs and Social Protection annually hosts a Pre-Budget Forum for consultation with community, voluntary and other representative organisations (such as groups representing older people, people with a disability, carers, employers, jobseekers, farmers and families with children).

Article 73

The relevant legislation does not contain any distinctions on the grounds of nationality for beneficiaries. 

Response to the matters raised in the draft Resolution of the Committee of Ministers

Response to the matters raised in the draft Resolution of the Committee of Ministers on the 44th Annual Report submitted by the Government of Ireland are at the Appendix.


 

Appendix

DRAFT

Resolution CM/ResCSS(2018)…

on the application of the European Code of Social Security

by Ireland

(Period from 1 July 2016 to 30 June 2017)

(Adopted by the Committee of Ministers on …. 2018

at the …th meeting of the Ministers’ Deputies)

The Committee of Ministers,

In the exercise of the functions conferred upon it by Article 75 of the European Code of Social Security (hereinafter referred to as the “Code”), and with a view to supervising the application of this instrument by the Contracting Parties;

Whereas the Code, opened for signature on 16 April 1964, entered into force on 17 March 1968 and since 17 February 1972 has been binding on Ireland, which ratified it on 16 February 1971;

Whereas, when ratifying the Code, the Government of Ireland stated that it accepted, in addition to the parts which must be applied by every Contracting Party (Parts I, XI, XII, XIII and XIV), the following parts of the Code:

– Part III on “sickness benefit”,

– Part IV on “unemployment benefit”,

– Part V on “old-age benefit”,

– Part VII on “family benefit”,

– Part X on “survivors’ benefit”;

Whereas, in pursuance of paragraph 1 of Article 74 of the Code, the Government of Ireland submitted its 44th annual report on the application of the Code, for the period from 1 July 2016 to 30 June 2017;

Whereas, in accordance with paragraph 4 of Article 74, that report was examined by the ILO Committee of Experts on the Application of Conventions and Recommendations, at its 88th meeting in November and December 2017;

Whereas, when Contracting Parties are invited to submit annual reports under the Code and its Protocol, if the country has ratified one or more of ILO Convention N°s 102, 121, 128 or 130, copies of the relevant reports may be used in order to report on the Code provided that, where necessary, they are completed by any other information requested in the form;

Whereas, at the 133th meeting of the Governmental Committee of the European Social Charter and the European Code of Social Security (9-13 May 2016), the ILO representative presented the ILO’s approach to assisting governments in fulfilling their reporting obligations by bringing together information on social security provisions in national reports under the Code and relevant ILO treaties, including the above-mentioned ILO Conventions, into one “consolidated report” to be updated by the government, with a view to ensuring consistency;

 

Recalls that the ILO Conclusions on application of the Code and its Protocol for the period 1 July 2016 to 30 June 2017 were transmitted to the government representatives of Contracting Parties in view of discussion and adoption of the draft resolutions on application of the Code and its Protocol at the 137th meeting of the Governmental Committee, 23-27 April 2018;

Recalls that the ILO published updated Technical Notes for each Contracting Party to the Code, in addition to the ILO Conclusions on application of the Code and its Protocol, with a view to providing technical guidance to governments;

Recalls that information which the Government is requested to provide in its next report (due by 31 July 2018) for the period 1 July 2017 to 30 June 2018, will be examined by the ILO Committee of Experts at its next meeting in November/December 2018;

Notes:

I.          concerning Part III (Sickness benefit), Article 68(f) and (g), Suspension of benefit, that according to section 46(1) of the Social Welfare Consolidation Act 2005 and Part 2, Chapter 1, Section 24(1) of the Social Welfare (Consolidated Claims, Payments and Control) Regulations 2007 (SI 142 of 2007), illness benefit payment may be suspended for a period not exceeding nine weeks if the claimants, inter alia, become incapable of work through their own misconduct or behave in a way that is likely to hinder their recovery. The Committee of Ministers notes however that, according to the report, disqualifications under section 24(1) of the Regulations on these grounds, which may go beyond cases of the suspension of benefits authorised by the Code, are not implemented in practice;

II.         concerning Part III (Sickness benefit), Articles 17 and 18, Length of the qualifying and waiting periods, Part IV (Unemployment benefit), Article 23, Length of the qualifying period, that in its Resolution CM/ResCSS(2017)9 on the application of the European Code of Social Security by Ireland, the Committee of Ministers asked the Government to undertake, in accordance with Article 70(3) of the Code, a cost estimate and a social impact assessment of bringing the qualifying contribution conditions for Illness Benefit and Jobseeker’s Benefit and the number of waiting days for Illness Benefit in conformity with the Code, in order to better inform the Minister for Social Protection of the policy option of meeting Ireland’s legal obligations under the Code. The report states in this respect that the Department of Social Protection carries out social impact assessments using a microsimulation model, SWITCH, developed by the Economic and Social Research Institute (ESRI) in Ireland. The model simulates the impact of changes in welfare and income tax for a representative sample of 8,000 households, drawn from the Survey on Income and Living Conditions (SILC), with the data updated to reflect trends in population, employment and incomes. The Department requested that the ESRI examine the social impact assessment of these two measures mentioned by the Committee of Ministers; however, it is not possible for the SWITCH model to simulate this impact without significant developments to the model. Calculating the costs for introducing a measure to reduce the six-day waiting period for Illness Benefit to three days is a complex task as it would necessitate estimating the number of people who would become eligible for payment as a result of the change. However, the monetary estimate when the number of Illness Benefit waiting days was increased from three days to six days was €22m for a full year. It is considered that introducing a measure to reduce the six-day waiting period for Illness Benefit to three days would incur a similar level of expenditure. The report states that Ireland’s obligations under the Code will be brought to the attention of the Minister for Social Protection for consideration in the context of budgetary policy. The Government and the Committee of Experts on the Application of Conventions and Recommendations of the ILO will continue their dialogue with a view to addressing the issue of qualifying periods in the context of the Irish social welfare system;

III.        concerning Part IV (Unemployment benefit), Article 68, Suspension of benefit, that in its Resolution CM/ResCSS(2017)9, the Committee of Ministers asked the Government to edit the Jobseeker’s Benefit guidelines so as to eliminate all doubts that the misconduct of the person concerned may be punishable by the suspension of benefit only if such misconduct was wilful and has directly caused the contingency in question, in line with Article 68(f) of the Code. The Committee of Ministers notes with satisfaction that the Jobseeker’s Benefit guidelines have been edited to clarify that the misconduct of the person may result in suspension of benefit only if it is wilful. The report also states that Deciding Officers are advised to examine each case on its own merits and adopt a reasonable and common sense approach where a person has lost his/her employment through misconduct so that the person would not suffer a further penalty of disqualification from receiving a jobseekers payment where the conduct, though blameable, and giving sufficient ground for dismissal, was not wilful;

IV.        concerning Part XI (Standards to be complied with by periodical payments), Reference wage, Article 66, the report states that, following the recommendation of the Committee of Ministers, Ireland has compared its figure for the reference wage of an unskilled adult male labourer given in the 2014 report with that obtained from the Eurostat Structure of Earnings Survey (SES) of 2016, and recalculated the replacement rate of benefits using the Eurostat reference wage. These calculations show that the benefits provided in Ireland would attain the percentage as set out in the Schedule to Part XI of the Code. The Department of Social Protection continues to work with the Irish Central Statistics Office (CSO) particularly with regard to aligning the reference wage used with the comparable figures provided to Eurostat. When the SES data for 2015 becomes available, the CSO will provide a recalculated reference wage for 2015. It is planned that the Statistics Unit of the Department of Social Protection will examine the data provided, with a view to identifying the most appropriate reference wage category under Article 66 of the Code for future reporting purposes;

 V.        concerning Part XIII (Miscellaneous provisions), Article 74(1),Reporting on the Code, that the contents of the consolidated report, prepared by the ILO, has been noted by the Government and the missing information, technical clarifications, provisions of the national legislation and updated statistics, in so far as they are available, will be updated by it. The Committee of Ministers notes the possibility for the government to request the ILO to conduct a training workshop on how to use the consolidated report and ILO technical note, with a view to simplifying the reporting obligations on the Code; 

VI.        concerning sources and consistency of statistical data, with respect to statistical comparison between national and Eurostat indicators, the report explains that when national microdata is sent to Eurostat by Ireland, Eurostat creates a set of harmonised European Indicators which have different definitions to published national indicators. As such, they are not directly comparable with national indicators. Therefore it is important to use national poverty data when assessing the adequacy of national welfare rates. From an analytical perspective, the national poverty data and the national welfare rates both use the same equivalence scales, whereas Eurostat does not. The income and deprivation concepts used in Ireland are different to those used by Eurostat. Also, Ireland does not use the very low work intensity indicator. The EU acknowledges the right of member States to choose national indicators in the context of setting national poverty targets, in support of the Europe 2020 poverty target;

Finds that law and practice in Ireland continue to give full effect to Parts V, VII and X of the Code but do not fulfil the obligations under Parts III and IV because of stricter conditions of entitlement to sickness and unemployment benefits;

Decides to invite the Government of Ireland:


I.          concerning Part III (Sickness benefit), Articles 17 and 18, Length of the qualifying and waiting periods, Part IV (Unemployment benefit), Article 23, Length of the qualifying period, to indicate in its next report the measures taken or envisaged to gradually reduce the number of waiting days for Illness Benefit to meet the requirement of the Code within the maximum of the available resources;

Response:

While the general economic environment remains positive, Ireland is faced by real and varied risks, with uncertainties in relation to Brexit, the international taxation environment, and exchange rates. The Irish Government debt which built up during the recession period remains elevated and is estimated to be above 100% of gross national income in 2017. The Irish Central Bank has cautioned on prudence in relation to public spending, therefore in this context it is not possible, at this time, to reduce the length of waiting days for Illness Benefit.

However, there are measures in place to militate against its impact. Where persons have an income need, to cover the period until the Illness Benefit becomes available, they may have recourse to Supplementary Welfare Allowance (SWA).  This allowance is also paid to people who are ill but who do not qualify for an Illness Benefit payment and to people who do not qualify for other social welfare payments and whose means are below the appropriate rate. The scheme is demand led and is available to provide immediate and flexible assistance for those in need who do not qualify for payment under other State schemes. In addition, the Irish Business and Employers Confederation (IBEC) has statedthat approximately 75%[16] of employers, who are members of that organisation, have an occupational sick pay scheme in place, therefore many employees are covered by employer sick pay arrangements. 

The dialogue with the Committee of Experts on the Application of Conventions and Recommendations of the ILO will continue with a view to addressing the issue of qualifying periods in the context of the Irish social welfare system.


II.        concerning Part XI (Standards to be complied with by periodical payments), reference wage, Article 66, to provide information in its next report concerning the Government’s decision on the appropriate method of determining the reference wage of the unskilled male worker in line with the options foreseen in Article 66 of the Code;

Response:

The Department of Employment Affairs and Social Protection continues to work with the Irish Central Statistics Office (CSO) with regard to aligning the reference wage used with the comparable figures provided to Eurostat.  The 2014 reference wage figures were based on an analysis, by the CSO, of the Structure of Earnings 14 data, available through Eurostat, using their online analysis tool, and the specifications selected to align it with Article 66(4)(a) of the Code.  For the unskilled male worker the reference wage has been calculated by referring to male workers in elementary occupations (ISCO 9), in the manufacturing economic sector (NACE). 

The CSO does not currently have the dataset available to produce the reference wage, for the years 2015 and 2016, using the same methodology as 2014, and are awaiting confirmation on its availability.  In its absence the CSO has provided an estimated figure calculated by taking the 2014 figure and applying a percentage change, each year, based on data from the Earnings, Hours and Employment Costs Survey (EHECS). 

For the years 2015 and 2016, the CSO has provided the estimated reference wage figures as set out in the following template. They include an upward revision,* based on more detailed information being available, of the 2015 estimated figure provided in last year’s report.

Reference WageTemplate

2015

2015*

2016

% increase

for 2015

% increase

for 2016

Unskilled

3,118

3,143

3,217                            

0.96%

2.37%

Skilled

3,540

3,568

3,653

0.96%

2.37%

Using the figures provided in the template above, the 2015 figure for the unskilled male worker has been recalculated to €3,143 per month/€722.53 per week. In light of this revised reference wage for 2015, the following tables relating to Parts III, IV, V and X have been amended.

Recalculation based on the Reference Wage of €3143.00/month (i.e. €722.53)

Part III - Illness Benefit / Reference Wage (Couple with 2 Children)

Period

Wage

Allowance

Total

Benefit

Allowance

Total

%

2015

722.53

62.31

784.84

372.40

62.31

434.71

56

Part IV- Jobseeker's Benefit / Reference Wage (Couple with 2 Children)

Period

Wage

Allowance

Total

Benefit

Allowance

Total

%

2015

722.53

62.31

784.84

372.40

62.31

434.71

55

Part V - State Pension (Contributory)/Reference Wage-Couple both aged between 66 and 80 - No family Allowance

Period

Wage

Benefit

%

2015

722.53

436.60

60

Part X - Widow's/Widower's or Surviving Civil Partner's (Contributory) Pension - person under 66 of age plus 2 Children/ Reference Wage

Wage

Allowance

Total

Benefit

Allowance

Total

%

2015

722.53

62.31

784.84

253.10

62.31

315.41

40


III        concerning sources and consistency of statistical data, to review and complete accordingly the statistical indicators included in the ILO technical note, which are used by the Committee of Ministers to monitor key trends in poverty and welfare rates in Ireland.

Response:

Following the request of the Committee of Ministers, the relevant statistical indicators in the ILO technical note have been updated by Ireland in respect of 2014 and 2015.

Country profile by Eurostat indicators, National indicators and ILO minimum standards Eurostat

EU-Avg 2013

2005

2012

2013

2014

2015

At-risk-of-poverty threshold (40%, single person)

€462.30

€626.60

€658.25

€661.83

€672.33

€722.91

At-risk-of-poverty threshold (50%, single person)

€577.80

€783.30

€822.83

€827.33

€840.33

€903.66

At-risk-of-poverty rate -50%, before social transfers

19.50%

26.40%

34.00%

33.50%

31.40%

29.50%

At-risk-of-poverty rate -50%, after social transfers

10.20%

11.20%

9.70%

8.10%

8.80%

8.80%

At-risk-of-poverty rate for children under 18 y.o. -50% thrd

12.40%

15.00%

9.00%

6.90%

9.00%

9.50%

In-work poverty rate -50% threshold

5.20%

3.30%

3.30%

2.80%

2.70%

2.40%

At-risk-of-poverty rate for pensioners -50% threshold

6.00%

12.00%

8.70%

7.20%

7.40%

5.80%

Aggregate replacement ratio

55%

46%

42%

37%

38%

38%

Severe material deprivation (% of total population)

9.60%

5.10%

9.80%

9.90%

8.40%

7.50%

Persistent at-risk-of-poverty rate -50% threshold

5.20%

3.30%

3.60%

3.10%

2.80%

Social protection expenditure as % of GDP

25.00%

17.20%

24.40%

23.50%

21.60%

16.30%

Gini coefficient before social transfers

36.10%

41.80%

46.20%

46.50%

45.40%

42.80%

Gini coefficient after social transfers

30.50%

31.90%

30.50%

30.70%

31.10%

29.80%

Some of the above figures from 2012 onwards have been revised. These revisions arose following the identification of a processing error during the production of data for 2015. This error related to the method used to calculate Universal Social Charge (USC) and Pay Related Social Insurance (PRSI). It resulted in disposable income being under estimated over this period, though trends in the revised series mirror those in the previously published data.

It should be noted that the ILO 2016 Technical Note uses ‘at-risk-of-poverty’ (AROP) Eurostat thresholds of 40% and 50%.  The Irish national AROP threshold is below 60% of the median income which will result in a higher AROP percentage rate and a higher annual income threshold.  This will result in a greater number of people deemed to be at-risk-of-poverty than if the lower 40% or 50% thresholds are used.

With respect to statistical comparison between national and Eurostat indicators, when national microdata is sent to Eurostat by Ireland, Eurostat creates a set of harmonized European Indicators which have different definitions to published national indicators. As such, they are not directly comparable with national indicators. Therefore it is important to use national poverty data when assessing the adequacy of national welfare rates. From an analytical perspective, the national poverty data and the national welfare rates both use the same equivalence scales, whereas Eurostat does not. The income and deprivation concepts used in Ireland are different to those used by Eurostat. Also, Ireland does not use the very low work intensity indicator. The EU acknowledges the right of Member States to choose national indicators in the context of setting national poverty targets, in support of the Europe 2020 poverty target.



[1] These statistical figures relate to 2016 as this is the most recent material available and the insurance class information is a provisional pre-publication figure.

[2] Further detail on the reference wage figure is set out in response II.

[3] Section 40(1)(a) of the Social Welfare Consolidation Act 2005 states "the person is under pensionable age on the day for which the benefit is claimed".

[4] These statistical figures relate to 2016 as this is the most recent material available and the insurance class information is a provisional pre-publication figure.

[5] Further detail on the reference wage figure is set out in response II.

[6] 2 (a) Have 39 weeks PRSI paid or credited in the relevant tax year (a minimum of 13 weeks must be paid contributions) or 2 (b) Have 26 weeks PRSI contributions paid in the relevant tax year and 26 weeks PRSI contributions paid in the tax year immediately before the relevant tax year.

[7] Taken from the most recent CSO (2016) census which was held on the 24th April 2015

[8] These statistical figures relate to 2016 as this is the most recent material available and the insurance class information is a provisional pre-publication figure.

[9] Further detail on the reference wage figure is set out in response II.

[10] Classes G and N are historic classes that were abolished and persons insured at these rates are now insured at either Class A or S.

[11] Intreo is the integrated employment and income support service which was launched in October 2012.

[12] Further detail on the reference wage figure is set out in response II.

[13] These statistical figures relate to 2016 as this is the most recent material available and the insurance class information is a provisional pre-publication figure.

[14] Contribution Class H includes non-commissioned officers and enlisted personnel of the Irish Defence Forces.

[15] Credited contributions are similar to the social insurance contributions paid while employed and are usually awarded at the same rate as  the insured person’s last paid social insurance contribution.  A person, under age 66, may be entitled to credited contributions when claiming an income support payment.