Report presented by the
GOVERNMENT OF IRELAND
for the period from 1 July 2016 to 30 June 2017
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 from 1 July 2016 to 30 June 2017
Principal Changes to Primary Legislation
Social Welfare Act 2016
An Act to amend and extend the Social Welfare Acts; and to provide for related matters.
Principal Changes to Secondary Legislation
Paternity Leave and Benefit Act 2016 (Sections 30 and 31) (Commencement) Order 2016
This Order brings sections 30 and 31 of the Paternity Leave and Benefit Act 2016 into operation, other than an element of section 31 (as this provision is contingent on the relevant provision of the Children and Family Relationships Act 2015 being commenced separately).
The Paternity Leave and Benefit Act 2016 provides for 2 weeks of paternity leave and an associated social welfare benefit with effect from 1 September 2016. Sections 30 and 31 of the Act amend the Social Welfare Consolidation Act 2005 to provide for the new social welfare payment to be known as Paternity Benefit.
The remainder of the Act will be commenced separately by the Minister for Justice and Equality.
Social Welfare (Consolidated Claims, Payments and Control) (Amendment) (No. 2) (Paternity Benefit) Regulations 2016
The Paternity Leave and Benefit Act 2016 provides for 2 weeks of paternity leave and an associated social welfare benefit. Part 5 of that Act amends the Social Welfare Consolidation Act 2005 to provide for the new social welfare payment to be known as paternity benefit.
These Regulations insert a new Chapter 4A into Part 2 of the Social Welfare (Consolidated Claims, Payments and Control) Regulations 2007 (S.I. No. 142 of 2007).
Social Welfare (Consolidated Contributions and Insurability) (Amendment) (No. 1) (Paternity Benefit) Regulations 2016
The Paternity Leave and Benefit Act 2016 provides for 2 weeks of paternity leave and an associated social welfare benefit. Part 5 of that Act amends the Social Welfare Consolidation Act 2005 to provide for the new social welfare payment to be known as Paternity Benefit.
These Regulations provide for a number of consequential amendments to the Social Welfare (Consolidated Contributions and Insurability) Regulations 1996 (S.I. No. 312 of 1996) to make reference to the new scheme.
In addition, the Regulations provide for a number of miscellaneous amendments to update references to existing schemes.
Social Welfare (Temporary Provisions) Regulations 2016
These Regulations provide for the payment of a bonus to recipients of long-term social welfare payments and to recipients of Domiciliary Care Allowance during the month of December 2016.
The amount of the bonus in the case of recipients of long-term social welfare payments is 85% of the normal weekly payment payable during the first week in December 2016, subject to a minimum payment of €20. In the case of Domiciliary Care Allowance, the amount of the bonus is 85% of the weekly equivalent of the amount of Domiciliary Care Allowance payable during December 2016, subject to a minimum payment of €20.
Social Welfare (Consolidated Claims, Payments and Control) (Amendment) (No. 3) (Carer’s Allowance) Regulations 2016
Article 136 of the Social Welfare (Consolidated Claims, Payment and Control) Regulations 2007 provides for the circumstances in which a person will be regarded as providing full-time care and attention for the purposes of the Carer’s Allowance Scheme.
These Regulations extend these circumstances to provide for the continued payment of carer’s allowance for a period of up to 12 weeks where the person in respect of whom the allowance is payable has been permanently admitted to an institution.
Social Welfare (Consolidated Claims, Payments and Control) (Amendment) (No. 4) (Jobseeker’s Transitional Payment) Regulations 2016
These Regulations provide for an increase of €20 from €90 to €110 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 24 of the Social Welfare Act 2016.
The increase in the weekly earnings disregard in the case of recipients of the Jobseeker’s Transitional Payment is effective from 5 January 2017.
Social Welfare (Section 290A) (Agreement) Order 2016
Section 15 of the Social Welfare Act 2012 extended the Household Budgeting facility for social welfare recipients by introducing new provisions specific to local authority rents. Under these provisions 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.
The Social Welfare (Section 290A) (Agreement) Order 2015 (S.I. No. 601 of 2015) provided that for the purposes of section 290A(3)(b) of the Social Welfare Consolidation Act 2005 —
• it is specified that the Minister for Social Protection has entered into an agreement with An Post for the purposes of carrying out this household budgeting arrangement, and
• the period for which that agreement has effect is the period beginning on 1 January 2016 and ending on 31 December 2016.
It is now necessary to make a new Order for the same purposes for 2017. The Order will have effect for one year.
This Order specifies that the Minister for 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 2017 to 31 December 2017.
European Union (Occupational Pension Schemes Investment) (Amendment) Regulations 2016
These Regulations transpose the obligations imposed by Article 1 of Directive 2013/14/EU (the Credit Ratings Agencies Directive) which amends Article 18 of Directive 2003/41/EC (the IORP Directive). Directive 2013/14/EU requires that pension schemes avoid relying solely or mechanistically on credit ratings when assessing the risk involved in investments.
Social Welfare (Consolidated Supplementary Welfare Allowance) (Amendment) (No. 2) (Rent Supplement) Regulations 2016
Article 12 of the Social Welfare (Consolidated Supplementary Welfare Allowance) Regulations 2007 sets out the manner in which the minimum weekly contribution is calculated for the purposes of the Rent Supplement Scheme.
These Regulations provide for a reduction in the minimum weekly contribution towards the cost of rent in the case of persons who are in receipt of Rent Supplement and who, by virtue of being aged between 18 and 25 years or between 25 and 26 years, are in receipt of reduced rate payments of Jobseeker’s Allowance, Supplementary Welfare Allowance or Back to Education Allowance.
Social Welfare (Consolidated Claims, Payments and Control) (Amendment) (No. 5) (Prescribed Time) Regulations 2016
Section 241 of the Social Welfare Consolidation Act 2005 sets out the time and manner in which claims for various social welfare payments are to be made. Section 241 (2) specifically provides that where a person fails to make a claim for a social welfare payment within a prescribed time, then he or she will be disqualified for receiving payment for a period before such claim is made. Different periods are specified according to the nature of the different social welfare payment schemes.
The Paternity Leave and Benefit Act 2016 provides, inter alia, that paternity benefit can be paid at any time commencing on the date of the birth of the child (or placement in the case of an adoption) and ending not later than 28 weeks after that date.
Section 16 of the Social Welfare Act 2016 provides for regulatory making powers to allow the Minister to prescribe a specified time for making a paternity benefit claim. These Regulations prescribe that in the case of paternity benefit the specified time shall be the date on which, apart from satisfying the condition of making a claim, the claimant becomes entitled thereto. This means that, in order for a full payment of 2 weeks Paternity Benefit to be paid, the claim must be made within 26 weeks of the date of birth of the child or the date of placement.
Social Welfare (Consolidated Contributions and Insurability) (Amendment) (No. 2) (Excepted Emoluments) Regulations 2016
Article 50A(f) of the Social Welfare (Consolidated Contributions and Insurability) Regulations 1996 provides that emoluments within the meaning of the Taxes Consolidation Act 1997 received by a range of public office holders are not “reckonable emoluments” and therefore not subject to PRSI at the class S rate or the modified PRSI classes B, C or D.
These Regulations amend Article 50A(f)(iv) by excluding members of a local authority from its provisions. This means that, with the exceptions of persons aged over 66 years and modified rate contributors (pre-1995 civil/public servants), PRSI at class S rate will be payable on a person’s income as a councillor.
Social Welfare Act 2016 (Section 18) (Commencement) Order 2016
This Order provides for the commencement of section 18 (other than paragraph (a)(i)) of the Social Welfare Act 2016 with effect from 31st December 2016.
Section 18 provides for amendments to section 246 of the Social Welfare Consolidation Act 2005 which relates to habitual residence. The amendments provide for the relevant provisions of the European Communities (Free Movement of Persons) Regulations 2015 and the International Protection Act 2015 to be appropriately referenced in section 246 .
Paragraph (a)(i) of section 18 relates to the European Communities (Free Movement of Persons) Regulations 2015 and took effect on the enactment of the Bill on 19 December 2016.
The remaining provisions in section 18 update section 246 of the Social Welfare Consolidation Act 2005 by providing the appropriate reference to the relevant provisions of the International Protection Act 2015 which will maintain the current policy with respect to habitual residence. These provisions are being commenced from 31st December 2016 in order for them to take effect in social welfare legislation on the same date the related provisions of the International Protection Act 2015 are being commenced by the Minister for Justice and Equality.
Social Welfare Act 2016 (Section 10) (Commencement) Order 2016
This Order provides for the commencement of section 10 of the Social Welfare Act 2016 with effect from 1st January 2017.
Section 10 provides for the exclusion of members of a local authority from the class K PRSI charge. Currently, councillors pay PRSI at the class K rate of 4% on their income as public office holders, provided that income exceeds €5,200 per annum.
Social Welfare (Consolidated Claims, Payments and Control) (Amendment) (No. 1) (Absence from the State) Regulations 2017
Section 249 (1)(a) of the Social Welfare Consolidation Act 2005 provides that Regulations may be made to set out the circumstances in which a person may continue to receive a social welfare benefit while he or she is absent from the State.
These Regulations extend the range of benefits which can continue to be paid while the claimant is absent from the State on holiday to include Maternity Benefit (for up to six weeks), Adoptive Benefit (for up to six weeks) and Paternity Benefit (for up to two weeks).
Since EU Regulations already provide that EU citizens will continue to receive these payments when they are in another member state, these Regulations are intended to facilitate, in particular, persons from outside the EEA (EU member states along with Norway, Iceland and Liechtenstein), as well as Switzerland, working within the State who may wish to spend time in their native countries having become a parent to, or adopted, a child.
Social Welfare (Consolidated Claims, Payments and Control) (Amendment) (No. 2) (Nominated Persons) Regulations 2017
Section 244 (1)(a) of the Social Welfare Consolidation Act 2005 provides that Regulations may be made to enable a person to whom a social welfare benefit is payable to nominate another person (an agent) to collect social welfare payments on his or her behalf. In practice this covers the collection of payments from the payment service provider (An Post) in two scenarios—
• The beneficiary, being indisposed and temporarily unable to attend the post office, nominates another person as their temporary agent to collect the social welfare payment on their behalf,
• The beneficiary nominates another person, on an ongoing basis, as their permanent agent to collect the social welfare payment on their behalf.
Section 17 of the Social Welfare Act 2016 amended section 244 (1)(a) of the Social Welfare Consolidation Act 2005 to provide that the nomination of agents is subject to such conditions and in such circumstances as prescribed in Regulations.
These Regulations replace Article 201 of the Social Welfare (Consolidated Claims, Payments and Control) Regulations 2007. They distinguish between temporary agents and permanent agents and provide, additionally, that a temporary agent may only collect up to 5 payments in a 6 month period. The Regulations also provide that the use of an agent to collect a social welfare payment on behalf of a beneficiary is limited to certain long-term payments. The Regulations are reflective of the payment arrangements, including the nomination of agents, in place with the Department’s payment service provider.
Social Welfare (Consolidated Contributions and Insurability) (Amendment) (No. 1) (Voluntary Contributions) Regulations 2017
These Regulations provide for the extension of the time frame for application to become a voluntary contributor from twelve months from the end of the contribution year in which PRSI contributions were last paid or credited, to sixty months from the end of the contribution year in which such contributions were paid or credited.
These Regulations also provide that the revised time limits for payment of voluntary contributions shall be—
— within twelve months of the date of issue of notification of the amount of voluntary contribution due, or
— after such date, if the Minister is satisfied that there is good cause for late payment.
A number of other necessary consequential amendments, arising from the extension of the time frame, are also required to be made to the Social Welfare (Consolidated Contributions and Insurability) Regulations and these Regulations provide for the necessary changes.
Social Welfare (Jobseeker’s Benefit Variation of Rate Specified in Sections 65A and 66(1A) of the Social Welfare Consolidation Act 2005) Regulations 2017
Section 64(1) of the Social Welfare Consolidation Act 2005 provides that in order to qualify for Jobseeker’s Benefit, a claimant, in addition to having made a minimum number of PRSI contributions, must have, in the governing contribution year-
— reckonable weekly earnings or weekly income in excess of €300.00, or
— such lesser reckonable weekly earnings or lesser reckonable weekly income as specified in section 64(6) of the Act.
In the case of earnings or income within the ranges specified in section 64(6), a lower rate of Jobseeker’s Benefit is payable in accordance with section 65A of the Act.
These Regulations provide for an increase in the personal weekly rates of Jobseeker’s Benefit arising from Budget 2017.
The Regulations also provide for an increase where a qualified adult increase is payable to these claimants. They provide for an increase of €2.10 (from €80.90 to €83.00) per week in the amount payable for a qualified adult.
The variation in the rates provided for by these Regulations comes into effect on 9 March 2017 to coincide with the increase in the full rate of Jobseeker’s Benefit provided for by section 21 of, and Schedule 1 to, the Social Welfare Act 2016.
Social Welfare (Occupational Injuries) (Amendment) (No. 1) Regulations 2017
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 rates provided for in Schedule 3 apply in respect of a continuing disablement of between 1 and 19 per cent which arose prior to 1 January 2012. Schedule 3A applies where the disablement occurs after 1 January 2012 and in such a case, Disablement Gratuity and Disablement Pension are payable only where the extent of disablement is greater than 14 per cent.
The Regulations also provide for an increase in the rate of Injury Benefit payable to persons under the age of sixteen. If, in such a case, there is what amounts to full-time employment, or substantially full-time employment, the weekly rate will increase by €5.00 (from €188.00 to €193.00). This is the same rate as the maximum rate payable to an adult. In all other cases the rate will increase by €2.40 (from €89.90 to €92.30).
Social Welfare (Consolidated Claims, Payments and Control) (Amendment) (No. 3) (Change in Rates) Regulations 2017
Section 21 of the Social Welfare Act 2016 provides for increases in the maximum rates of certain social insurance payments arising from Budget 2017. These rates will apply where the contribution conditions and relevant weekly earnings or weekly income conditions are fully satisfied.
Where contribution conditions are partially satisfied, the Social Welfare Consolidation Act provides for Regulations to specify the reduced personal rates and for tapered increases for a qualified adult (where such a qualified adult has a weekly income).
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, Widower’s or Surviving Civil Partner’s (Contributory) Pension and Deserted Wife’s Benefit. The reduced rates for qualified adults, where applicable, in such cases are also increased.
The Regulations also provide for 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.
Finally, the Regulations provide for 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.
Social Welfare (Consolidated Supplementary Welfare Allowance) (Amendment) (No. 1) (Diet Supplement) Regulations 2017
These Regulations provide that the 2017 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.
Social Welfare (Rent Allowance) (Amendment) (No. 1) Regulations 2017
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 10 March 2017.
Social Welfare Act 2016 (Section 9(a)) (Commencement) Order 2017
This Order provides for the commencement of section 9(a) of the Social Welfare Act 2016 with effect from 27 March 2017.
Section 9(a) provides for the extension of entitlement to the Treatment Benefit scheme to self-employed people (i.e. PRSI Class S contributors).
Social Welfare (Consolidated Claims, payments and Control) (Amendment) (No. 4) (Household Budgeting) Regulations 2017
Section 20 of the Social Welfare and Pensions Act 2015 extended the Household Budgeting facility for social welfare recipients by including credit unions as specified bodies for the purposes of payments made under the Personal Micro Credit Scheme. The Scheme provides for small-scale loans from credit unions and has been approved by the Minister for the purposes of the Household Budgeting facility.
These Regulations amend Article 233 of the Social Welfare (Consolidated Claims, Payments and Control) Regulations 2007 to provide for the class of credit union loans covered, the maximum amount of such a loan, the maximum interest rate chargeable, and the maximum period in which such a loan is to be repaid.
II. Medical Care
This Part of the Convention has not been accepted by Ireland.
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 A15 of the Annual Statistical Report for 2015 for the Department of Social Protection details the numbers and classes of insured persons.[1]
http://www.welfare.ie/en/Pages/Annual-SWS-Statistical-Information-Report-2015.aspx
Detailed explanations of the Classes can be accessed at: http://www.welfare.ie/EN/Publications/sw19/Pages/sw19_intro.aspx
Classes of employees who are covered for Illness Benefit:
· Persons in Classes A, E, H and P– total 2,290,442
Classes of employees not covered for Illness Benefit:
· Persons in classes B, C, D and J – total 100,378
(Class J includes an unknown number of employees who are over pension age)
Total number of employees = 2,390,820
Percentage insured for Illness Benefit in 2015 = 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 13 March 2017 the maximum personal rate of Illness Benefit has been increased from €188.00 to €193.00 per week. The maximum rate of qualified adult has also increased from €124.80 to €128.10 per week, and the rate for a qualified child remains at €29.80 per week.
The 2015 rate used in the comparison to the reference wage below includes the personal rate of €188.00, the qualified adult rate of €124.80 and the qualified child rate of €29.80.
Article 66 Title II
Reference Wage / Illness Benefit (couple and 2 children)
|
Period |
Wage € |
All'nce *€ |
Total € |
Benefit € |
All'nce ** € |
Total € |
% |
|
2014 |
559.86 |
114.37 |
674.23 |
372.40 |
60.00 |
432.40 |
64 |
|
2015 |
716.78 |
62.31 |
779.09 |
372.40 |
62.31 |
434.71 |
56 |
* The family allowances for a worker in this column include Child Benefit and the rate of Family Income Supplement (FIS) appropriate to a family with this level of income. In 2015 the level of earnings exceeded the threshold for FIS allowance and so this figure includes Child Benefit only, payable at €135 per month for each child.
** The family allowance for a beneficiary in this column includes Child Benefit only, although payment of FIS (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 € |
% |
|
2014 |
559.86 |
188.00 |
34 |
|
2015 |
716.78 |
188.00 |
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 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:
· 624 payment days (2 years) if they have at least 260 weeks PRSI contributions paid since they first started work,
or
· 312 payment days (1 year) if they have between 104 and 259 weeks PRSI contributions paid since they first started work.
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.
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 that they 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.
IV. Unemployment Benefit
Article 20
There are no changes 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 are no changes to the classes of employees covered for Jobseeker’s Benefit since the last report.
Table A15 of the Annual Statistical Report for 2015 for the Department of Social Protection details the numbers and classes of insured persons.
http://www.welfare.ie/en/Pages/Annual-SWS-Statistical-Information-Report-2015.aspx
Classes of employees who are covered for Jobseeker’s Benefit:
· Persons in Classes A, H and P – total 2,290,286
Classes of employees not covered for Jobseeker’s Benefit:
· Persons in classes B, C, D, E and J – total 100,534
(Class J includes an unknown number of employees who are over pension age)
Total number of employees = 2,390,820
Percentage insured for Jobseeker’s Benefit in 2015 = 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)[4]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 2017 introduced changes to the rates of Jobseeker’s Benefit. From 9 March 2017, the maximum personal rate of Jobseeker’s Benefit increased from €188.00 per week to €193.00 per week. The maximum rate of increase for a qualified adult increased from €124.80 per week to €128.10 and the increase for a qualified child remains at €29.80 per week.
The 2015 rate used in the comparison to the reference wage below includes the personal rate of €188.00, the qualified adult rate of €124.80 and the qualified child rate of €29.80.
Article 66 Title II
Reference Wage / Jobseeker’s Benefit (couple and 2 children)
|
Period |
Wage € |
All'nce *€ |
Total € |
Benefit € |
All'nce ** € |
Total € |
% |
|
2014 |
559.86 |
114.37 |
674.23 |
372.40 |
60.00 |
432.40 |
64 |
|
2015 |
716.78 |
62.31 |
779.09 |
372.40 |
62.31 |
434.71 |
56 |
* The family allowances for a worker in this column include Child Benefit and the rate of FIS appropriate to a family with this level of income. In 2015 the level of earnings exceeded the threshold for FIS allowance and so this figure includes Child Benefit only payable at €135 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 € |
% |
|
2014 |
559.86 |
188.00 |
34 |
|
2015 |
716.78 |
188.00 |
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 23
Conditions for receipt of Jobseeker’s Benefit
There are 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 2 tax years before the relevant tax year;
- The last complete tax year;
- The current tax year.
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[5]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 JB payment beyond 234 days (9 months) or 156 days (6 months) weeks) 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.
Suspension of Benefit
There are 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:
- The nature of the employment;
- The hours of work;
- The rate of pay;
- The duration of the employment;
- The location of the employment.
In any case where a Department of 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[6]if they:
- Left work voluntarily and without a reasonable cause;
- Lost their job through their misconduct;
- Refusal or failure to engage with activation measures where penalty rates applied;
- Are aged under 55 and get a redundancy payment of more than €50,000. The exact length of the disqualification (up to nine weeks) will in practice, depend on the precise amount of redundancy payment received as outlined in the table below.
|
Amount of Redundancy Payment |
Period of Disqualification |
|
€50,000.00 - €55,000 |
1 Week |
|
€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 the basic social assistance scheme: Supplementary Welfare Allowance.
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 2016, 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 A15 of the Annual Statistical Report for 2015 for the Department of Social Protection details the numbers and classes of insured persons.
http://www.welfare.ie/en/Pages/Annual-SWS-Statistical-Information-Report-2015.aspx
Classes of employees covered for State Pension (Contributory)
· Persons in Classes A, E and H– total 2,290,432
Classes of employees not covered for State Pension (Contributory)
· Persons in classes B, C, D, P and J – total 100,388
(Class J includes an unknown number of employees who are over pension age)
Total number of employees = 2,390,820
Percentage insured for State Pension (Contributory) in 2015 = 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)[7]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
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. The living alone allowance continues to be €9.00 per week.
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.
Article 66 Title III
Reference Wage / State Pension (Contributory)
(Couple – both aged between 66 and 80. No family allowance payable)
|
Period |
Wage € |
Benefit € |
% |
|
2014 |
559.86 |
436.60 |
78 |
|
2015 |
716.78 |
436.60 |
61 |
Article 66 Title V
Reference Wage (single person, male) /
Maximum weekly rate of Pension (single person, male or female)
|
Period |
Wage € |
Benefit € |
% |
|
2014 |
559.86 |
230.30 |
41 |
|
2015 |
716.78 |
230.30 |
32 |
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)* |
Average earnings € |
Old Age Pension (couple + 2 children) € |
Old Age Benefit (couple with no children) € |
|
February 2016 |
100.80* |
€716.86** |
€501.90 |
€442.30 |
|
February 2017 |
101.30* |
€723.08** |
511.40 |
451.80 |
|
Percentage change |
0.5% |
0.87% |
1.89% |
2.15% |
*http://www.cso.ie/en/releasesandpublications/er/cpi/consumerpriceindexfebruary2017/
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) 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 April 6 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.[8]
VI. Work Accident and Occupational Disease Benefit
This Part of the Convention has not been accepted by Ireland.
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 |
2017 monthly rate |
2017 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 OFP is 7 years for all recipients, save the exemptions outlined below.
Exceptions:
- Where a person is in receipt of a Domiciliary Care Allowance (DCA) for any child in the family, OFP may continue up to the more favourable of:
• 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.
- Where a person is caring for an individual other than their own child and is in receipt of OFP and a half-rate Carer’s Allowance payment, OFP may continue up to the 16th birthday of the youngest child once the recipient continues to qualify for OFP and Carer’s Allowance.
- A person who is recently bereaved (having been married, cohabiting or in a civil partnership) and is thus parenting alone can claim OFP beyond the normal age limit for the youngest child of 7 years. They can claim OFP for up to two years from the date of death of the spouse/cohabitant/civil partner or until the youngest child reaches 18 years of age, whichever is earlier. This ensures that those recently bereaved with children approaching or over 7 years of age are supported.
- Lone parents who are in receipt of a Blind Pension can retain their entitlement to OFP until their youngest child is 16 years of age subject to the conditions of the schemes.
Post One-Parent Family Payment Income Supports
When OFP entitlement 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 Family Income Supplement (FIS). If already in receipt of FIS, the amount of this supplement may, in certain circumstances, be increased when OFP ends. FIS 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 OFP payment, which equals €29.80 per week per child (up to a maximum of €119.20 per week for four children), for two years, with full payment of the qualified child increase (worth €1,550 per child) in the first year and 50% entitlement (worth €775 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 two years 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 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 two years as above.
Enhanced Activation 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 from the Department 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’s Intreo service.[9] The aim of this broader support is to improve the individual’s employment prospects.
The Department’s Intreo 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 the Department's 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 OFP 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.
One-Parent Family Payment Reforms 2017
The following measures were announced in Budget 2017:
An increase in the income disregard for parents in receipt of the One-Parent Family Payment and the Jobseeker’s Transitional Payment from €90 a week to €110 a week with effect from 5th January 2017;
A €5 increase in the rate of the One-Parent Family Payment, Jobseeker’s Transitional Payment, Jobseeker’s Allowance and the Back to Education Allowance with effect from 16th March 2017;
A new €500 Cost of Education Allowance per annum has been introduced for parents, including lone parents, in receipt of Back to Education Allowance with effect from 1st September 2017;
A Christmas Bonus of 85% was paid in early December 2016;
The National Minimum Wage was increased to €9.25 an hour.
Family Income Supplement Payment Rates
The weekly income thresholds for receipt of Family Income Supplement (FIS) are set out in the following table.
|
No. of Children |
2017 |
|
€ |
|
|
1 |
511 |
|
2 |
612 |
|
3 |
713 |
|
4 |
834 |
|
5 |
960 |
|
6 |
1,076 |
|
7 |
1,212 |
|
8+ |
1,308 |
The rate of Family Income Supplement 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 FIS 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 2015
The following statistics relate to the range of child supports provided by the Department of Social Protection in 2015:
Total amount of Child Benefit paid: €1,990 million
Total amount of Family Income Supplement paid: €368 million
Back to School Clothing and Footwear expenditure: €41 million
Total amount of above: €2,399 million*
Total number of children of all residents within qualifying age range: 1,187,774
The reference wage for 2015 is €716.78 per week or €37,416 per annum.
* Total expenditure of €2,399 million is approximately 5.4% of €37,416 x 1,187,774 (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 OFP are 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:
• OFP is not payable while a person is in a relationship and cohabiting with someone of the opposite or same sex;
• OFP is 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 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 OFP 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 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 Social Protection, or the person being so incapacitated that she or he was unable to pursue the claim, or a force majeure.
Where the OFP payment ceases due to the age of the youngest child / relevant child, the FIS rate may be reviewed.
VIII. MATERNITY BENEFIT
This Part of the Convention has not been accepted by Ireland.
IX. INVALIDITY BENEFIT
This Part of the Convention has not been accepted by Ireland.
X. SURVIVOR'S BENEFIT
Article 60
There is no change to report in respect of this Article.
Article 61
Sub-paragraph (b) applies.
Table A15 of the Annual Statistical Report for 2015 for the Department of Social Protection details the numbers and classes of insured persons.
http://www.welfare.ie/en/Pages/Annual-SWS-Statistical-Information-Report-2015.aspx
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[10], S and Voluntary Contributions – total 2,687,886
Estimate of total population in 2015: 4,635,400
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 2017 the maximum weekly personal rate for Widow’s/Widower’s, or Surviving Civil Partner’s (Contributory) Pension aged under 66 increased by €5 to €198.50. The maximum weekly personal rate for recipients aged 66 and under 80 increased by €5 to €238.30 which increases to €248.30 where the beneficiary is aged over 80. The qualified child increase remained at €29.80 weekly.
The 2015 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.
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 € |
% |
|
2014 |
559.86 |
114.37 |
674.23 |
253.10 |
60.00 |
313.10 |
46 |
|
2015 |
716.78 |
62.31 |
779.09 |
253.10 |
62.31 |
315.41 |
40 |
* The family allowances for a worker in this column include Child Benefit and the appropriate rate of Family Income Supplement to a family with this level of income. In 2015 the level of earnings exceeded the threshold for FIS allowance and so this figure includes Child Benefit only payable at €135 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 € |
% |
|
2014 |
559.86 |
193.50 |
35 |
|
2015 |
716.78 |
193.50 |
27 |
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 Cost of Living and Average Wages
|
Year |
CPI (base 2011 =100)* |
Average earnings € |
Old Age Pension (couple + 2 children) € |
Old Age Benefit (couple with no children) € |
|
Q4 2016 |
100.80* |
€716.86** |
€501.90 |
€442.30 |
|
Q1 2017 |
101.30* |
€723.08** |
€511.40 |
€451.80 |
|
Percentage change |
0.5% |
0.87% |
1.89% |
2.15% |
*http://www.cso.ie/en/releasesandpublications/er/cpi/consumerpriceindexfebruary2017/
Article 63
Social Insurance Contributions (PRSI)
There are no changes to the contribution conditions since last year’s 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:
- At least 260 contributions paid to the date of the spouse/civil partner’s death or before the person’s 66th birthday, whichever is earlier. If the person’s late spouse or partner died before 27 December 2013, 156 paid contributions are required to satisfy this condition;
and
- An average of 39 paid or credited contributions[11] in either the 3 or 5 years before the death of the spouse/civil partner or before they reached pension age (66);
or
- A yearly average of at least 24 paid or credited contributions from the year of first entry into insurance, until the year of death or reaching pension age. If this average is used then an average of 24 will entitle the person to a minimum pension. An average of 48 paid or credited contributions per year is required to get the full pension.
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 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) (section 124);
· Remarriage or registration of a Civil Partnership (unless and until such time as their second spouse/civil partner dies) (section 124);
· Imprisonment (for the duration of their imprisonment) (section 249(1));
· Participation in a Community Employment Scheme (for the duration of the Scheme) (section 247B); or
· Receipt of a Training Allowance from SOLAS (the Further Education and Training Authority (section 247A).
The following would mean an increase for qualified child may no longer be payable under sections 2(3) and 127(1):
· 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.
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 Family Income Supplement.
The Appeals Office operates independently of the Department of Social Protection to provide an appeals service to persons who are dissatisfied with decisions of Deciding Officers or Designated Persons of the Department of Social Protection 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 2015 on each of the schemes dealt with in this report.
|
Scheme |
Expenditure for 2015 €000 |
|
Illness Benefit |
620,007 |
|
Jobseeker’s Benefit |
387,152 |
|
State Pension (Contributory) |
4,476,840 |
|
Child Benefit* |
1,990,296 |
|
Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension |
1,422,114 |
|
TOTAL |
8,896,409 |
*Family Benefits are funded by the Exchequer and not from the Social Insurance Fund.
Total expenditure on all social welfare schemes in 2015 amounted to €19,965,886 million, of which €11,349,403 million was met from taxation and € 8,616,483 million from the Social Insurance Fund.
Article 71
The Administration of the social welfare system is managed by the Department of Social Protection which is a Government Department. As part of the budget deliberations, the Minister for Social Protection annually hosts a Pre-Budget Forum with community and voluntary organisations representative of various social welfare groups (such as older people, people with an illness or disability, unemployed people and families with children).
Article 73
The relevant legislation does not contain any distinctions on the grounds of nationality for beneficiaries.
Responses to the Resolutions of the Committee of Ministers
Responses to the Resolutions of the Committee of Ministers on the 43rd Annual Report submitted by the Government of Ireland are at the Appendix.
Appendix
DRAFT
Resolution CM/ResCSS(2017)…
on the application of the European Code of Social Security
by Ireland
(Period from 1 July 2015 to 30 June 2016)
(Adopted by the Committee of Ministers on …. 2017
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 43rd annual report on the application of the Code, for the period from 1 July 2015 to 30 June 2016;
Whereas that report was detailed, accompanied by relevant statistics since the previous detailed report (2011), in accordance withthe Committee of Ministers’ decision taken at the 531st meeting of their Deputies that the supervision of the application of the Code and Protocol will call for the submission of a detailed report every five years and of four general reports in the intervening years;
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 87th meeting in November and December 2016,
Whereas, when Contracting Parties are invited to submit annual reports under the Code and its Protocol, the letter indicates that if the country has ratified one or more of ILO Convention N°s 102, 121, 128 or 130, copies of the relevant reports may also be sent to the Council of Europe, where necessary, completed by any other information relating to the Code;
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 2015 to 30 June 2016, accompanied by the above-mentioned consolidated report prepared by the ILO, 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 135th meeting of the Governmental Committee, 15-19 May 2017;
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 2017) for the period 1 July 2016 to 30 June 2017, will be examined by the ILO Committee of Experts at its next meeting in November/December 2017;
Notes:
I. concerning Part III (Sickness benefit), Article 68(f) and (g), Suspension of benefit, that according to section 46 of the Social Welfare Consolidation Act 2005 (as amended), Illness Benefit payment may be stopped if the claimants, inter alia, become incapable of work through their own misconduct or behave in a way that is likely to delay their recovery;
II. concerning Part III (Sickness benefit), Article 18; Part IV (Unemployment benefit), Article 24(1), Limits to the duration of benefit:
i. with regard to days of benefit, that according to the report, Illness Benefit is paid on a six-day week basis (Monday to Saturday), while Jobseeker’s Benefit is based on a seven‑day week (Sunday is treated the same as any other day in the week, as a day of employment or unemployment as appropriate);
ii. with regard to periods of incapacity for work, that according to the report, Illness Benefit is paid for each day, on which an insured person is unable to work due to illness, defined as a “day of incapacity for work”. Any three days of incapacity for work, whether consecutive or not, within a period of six consecutive days are treated as a period of incapacity for work and any two such periods, not separated by more than three days, are treated as one period of incapacity for work. In comparison with the Irish law, in the Code the term “day” means a calendar day, the term “week” means seven consecutive days, and the benefit must be paid “in each case of sickness” throughout its duration, which may be limited to 26 weeks;
iii. with regard to age limit, Articles 14 and 20, that according to the report, an insured person may receive Illness Benefit and Jobseeker’s Benefit up to the day before attaining the pensionable age (currently 66 years), which will rise to 67 in 2021 and 68 in 2028. The Committee of Ministers understands from this information that while a considerable number of insured persons are expected to continue working beyond the current pensionable age, they will lose any further insurance protection in case of sickness or unemployment; Illness or Jobseeker’s Benefit currently in payment will be automatically stopped on the day of the person’s 66th birthday, irrespective of the fact whether or not the person concerned qualifies for receipt of an old-age pension. The Committee of Ministers points out that the benefits in question shall be granted throughout the contingencies of sickness and unemployment, which are defined in the Code by reference to the working ability of the persons protected without regard to their age;
III. 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(2016)9 on the application of the European Code of Social Security by Ireland, the Committee of Ministers asked the Government to be more precise in stating its intentions to bring the situation into compliance with the parameters of the Code. In response the Government states that significant welfare savings taken as part of fiscal consolidation under the EU/ECB/IMF Programme for Support for Ireland ranged from reductions in weekly rates of payment to the abolition of certain schemes and included increasing the qualifying contribution conditions for Illness Benefit and Jobseeker’s Benefit in Budget 2009 and increasing the number of waiting days for Illness Benefit in Budget 2014. Over the period from April 2009 until 2014 savings in the order of €4 billion were introduced in social welfare expenditure. As the Government has restored financial stability, exited the EU/ECB/IMF Programme for Support for Ireland and delivered a return to job creation and economic growth, the intention is to broaden the recovery in a manner that benefits the daily lives of individuals, families and communities across the country. Since Budget 2015, there has been scope, albeit limited, for social welfare improvements of €198 million aimed at low-waged households, long-term unemployed, people with caring responsibilities and the elderly. This increased to €251 million in Budget 2016, which represented 32.5 per cent of new current expenditure measures by Government. However, the Government was not in a position in Budget 2016 to limit the six-day waiting period to employees covered by work sick pay schemes. The requirements of the accepted Parts of the Code are one of many competing requirements faced by the Government at this time and the improvements introduced in Budgets 2015 and 2016 reflect the Government’s present social welfare priorities aimed at making work pay, supporting families with children, the elderly and assisting the most vulnerable. Reversing the increase in the qualifying contribution conditions for Illness Benefit and Jobseeker’s Benefit and reducing the number of waiting days for Illness Benefit would have meant that some of the items introduced in Budgets 2015 and 2016 could not have proceeded. The competing economic and social priorities and the realistic options open to the Government within the available fiscal space for Budget 2016 were part of the broad National Economic Dialogue (NED) organised in July 2015 by the Department of Finance and the Department of Public Expenditure and Reform. NED was attended by representatives of community, voluntary and environmental groups, as well as elected officials, business unions, research institutes, the academic community and the diaspora. Welfare priorities of Budget 2016 were also supported by community and voluntary organisations representative of various social welfare groups (such as older people, people with an illness or a disability, unemployed people, families with children) within the framework of a Pre-budget Forum organised annually by the Minister for Social Protection. While the issues related to the qualifying contribution conditions for Illness Benefit and Jobseeker’s Benefit, or the number of waiting days for Illness Benefit have not been raised neither at NED nor at the Pre-budget Forum, it remains the Government’s intention to reconsider these issues in the context of the ongoing review and reform of Ireland’s social welfare and the system of prevailing fiscal constraints.
The Committee of Ministers understands the difficult choices facing the Government to successfully steer Ireland’s welfare system through fiscal consolidation while maintaining the value of core weekly rates of welfare payments and the inclusive nature of the overall system of support. It takes due note of the Government’s statement that though its social security arrangements in respect of the qualifying contribution conditions for Illness Benefit and Jobseeker’s Benefit and the number of waiting days for Illness Benefit are not technically in accordance with the Code, Ireland remains determined to meet the requirement of all accepted Parts of the Code and, as requested by the Committee of Ministers, its obligations under the Code will be brought to the attention of the Minister for Social Protection for consideration in the context of Budget 2017. The Committee of Ministers also notes that, in order to inform policy options of the Minister, the Department of Social Protection undertakes social impact assessments of a wide range of social welfare budget options and packages in advance of the budget. The Committee of Ministers believes that by choosing the policy option of meeting Ireland’s legal obligations under ratified international treaties on social security rights, Ireland could gradually bring its social security schemes back to their normal pre-crisis internationally agreed parameters
IV. concerning Part IV (Unemployment benefit), Article 68, Suspension of benefit, that the ILO Committee of Experts has examined consolidated information from the Government’s reports on the Code and Convention No. 102 since 2011. The Committee of Ministers notes that the spectacular decrease in the unemployment rate from over 15 per cent in 2012 to 7.8 per cent in June 2016 has been accompanied by a marked strengthening of the regime of sanctions for non-compliance with a wide range of activation measures introduced by the authorities;
i. thus, sections 12 and 13 of the Social Welfare and Pensions (Miscellaneous Provisions) Act 2013 provide for a strengthening of the sanctions which apply in the case of refusals to engage with activation measures, including failure, without good cause, to participate in prescribed employment or work experience programmes and courses of education, training and development;
ii. that according to the 2012 report on Convention No. 102, the disqualification for up to nine weeks for a refusal of an offer of suitable employment applied previously by the Deciding Officers of the Department of Social Protection remains;
iii. that in its previous Resolution CM/ResCSS(2016)9 on the application of the European Code of Social Security by Ireland, the Committee of Ministers asked the Government to provide proof that the Jobseeker’s Benefit guidelines are applied by the Deciding Officers in such a way as to ensure that in a situation where a person loses a job through misconduct she/he would not suffer a further penalty of disqualification for receiving a jobseeker’s payment if the conduct, though blameable and giving sufficient grounds for dismissal, was not wilful. The Committee of Ministers finds that the Jobseeker’s Benefit guidelines are not clear on this issue as on one and the same page in Part 4 they permit disqualification for “(a) loss of employment because of wilful misconduct” and “(b) Loss of employment through his/her own misconduct”, the latter illustrated by such examples as “bad time-keeping without valid reason” or “unreasonable behaviour at work”, which are not necessary wilful behaviour;
V. Part VII (Family benefit), Article 43, Qualifying period of residence:
i. that Part VII is applied in Ireland to prescribed classes of employees, in accordance with Article 41(a) of the Code, by means of the Child Benefit, which is a universal scheme covering all resident children. According to the report, the entitlement to Child Benefit is subjected to the habitual residence condition provided for by section 246 of the Social Welfare Consolidation Act 2005 (as amended). A person who does not have a right to reside cannot be regarded as habitually resident;
ii. the report further states that there is no minimum period of residence in the State required to satisfy the habitual residence condition, but the length and continuity of residence in Ireland is one of the main factors underpinning the application of the habitual residence condition;
VI. concerning Part XI (Standards to be complied with by periodical payments), Article 66, Reference wage, with reference to the explanations contained in the above-mentioned ILO technical note published in Ireland’s country profile in the ILO database, NORMLEX, the Committee of Ministers notes that, in accordance with Article 66(4)(b) of the Code, the Government determines the reference wage by reference to the category of “Other” in the Structure of Earning Survey (SES), which is based on the UK Standard Occupational Classification (SOC2010), with modifications to reflect Irish labour market conditions and corresponds to International Standard Classification of Occupations Group 9. For the purposes of calculations in the report, the mean weekly earnings by male workers in the “Other” category have been used. This aligns to weekly payments of most benefits in Ireland. The weekly rate of earnings aligns to the data on monthly earnings. This will be used as the basis for the reference wage in the future. The Committee of Ministers recalls that the above-mentioned ILO technical notes for each country party to the Code explain all the options envisaged by Articles 65–67 of the Code for calculation of the reference wage of the skilled male manual employee and the ordinary adult male labourer on the basis of all available information. These technical notes have been updated on the basis of the statistics provided in the latest reports on the Code and ILO social security Conventions and compared with the latest available data for 2014 obtained from the new Eurostat Structure of Earnings Survey (SES) of 2016. The Committee of Ministers recommends all Contracting Parties to compare the data on wages for 2014 given in their reports with that presented in the SES and to assess the possible differences in the methodological approaches. To facilitate this task, the table attached to the ILO Conclusions on the application of the Code and its Protocol calculates the reference wage under the three options allowed by the Code on the basis of the SES data for 2014 and highlights instances where such reference wage appears to be substantially higher than the corresponding wage determined by the government in its report;
VII. concerningPart XIII (Miscellaneous provisions), Article 74(1), that the ILO Committee of Experts on the application of Conventions and Recommendations has consolidated the relevant information provided in the previous reports on the Code and ILO social security Conventions supplied during the period 2006-16. The above-mentioned consolidated report, transmitted to the government, thus contains all the relevant information provided by Ireland over the last decade on the application of these instruments and greatly improves the quality of reporting in terms of the consistency of the information available, coherence across different schemes and benefits providing protection, and the efficacy of the regulatory framework governing the national social security system. With regard to the completeness of the available information, the consolidated report reveals certain information gaps concerning indicated provisions, and relevant questions of the report form on the Code are included as a reminder to complete the consolidated report with the requested information. With respect to the clarity of the information provided, particularly as regards rules and elements taken into account for the calculation of the level of benefits, in many instances it requires technical clarifications from the national experts and concrete references to the corresponding provisions of the national regulations;
VIII. concerning sources and consistency of statistical data, according to Article 74(1)(b), the reports on the Code shall include evidence of compliance with statistical conditions specified with respect to the number of persons protected, the rates of benefits and the proportion of the financial resources constituted by the insurance contributions of employees protected. This evidence shall be presented in such general order and manner as may be suggested by the Committee of Ministers. It should be noted that the same statistical information given in different reports often comes from different sources and databases used by different government agencies contributing to the report, and is not compatible. It is also not uncommon for the source of information to not be indicated at all or the exact data to be replaced by ad hoc estimates. The Committee of Ministers recalls that one of the main characteristics of the Code is that compliance with its provisions is established by reference to precise numbers and percentages, which makes the quality, consistency and comparability of the statistical information an essential condition of the effective functioning of the supervisory mechanism. The ILO Committee of Experts has therefore elaborated a simplified template for the statistical data requested in the report form on the Code, which is attached to the ILO Report and Conclusions on application of the Code and its Protocol, and has prefilled it with the data given in the Government’s latest reports, which may at times appear to be divergent or controversial;
Finds that the 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 establishing stricter conditions of entitlement to sickness and unemployment benefits;
Decides to invite the Government of Ireland:
I. concerning Part III (Sickness benefit), Article 68(f) and (g), Suspension of benefit, to explain in its next report how the above-mentioned reasons for the disqualification are defined and applied in practice by the Department of Social Protection Deciding Officers and whether courts of law or other tribunals have given decisions in this respect;
Response:
Provisions relating to the disqualification of Illness Benefit are defined in both primary and secondary legislation. Section 46 of the Social Welfare Consolidation Act 2005 provides for regulations for disqualifying a person for Illness Benefit for a period not exceeding 9 weeks.
The specific conditions the Committee have enquired about are provided for as follows:
Disqualification
46.-(1) Regulations may provide for disqualifying a person for receiving Illness Benefit for such period not exceeding 9 weeks as may be determined under this Part where-
(a) the person becomes incapable of work through his or her own misconduct
(b) the person fails without good cause to comply with such requirements as may be specified by the regulations, including but not necessarily limited to:
(iii) refraining from behaviour likely to hinder his or her own recovery
The relevant regulations are set out as follows:
Part 2 Chapter 1 Section 24(1) of the Social Welfare (Consolidated Claims, Payments and Control) Regulations 2007 (SI 142 of 2007):
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24. (1) A person shall be disqualified for receiving illness benefit for such period not exceeding 9 weeks as may be determined under the provisions of the Principal Act if he or she— |
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(a) has become incapable of work through his or her own misconduct, |
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(b) fails without good cause to attend for, or to submit himself or herself to, medical or other examination in accordance with sub-article (2), |
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(c) fails without good cause to— |
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(i) comply with any instructions relating to his or her incapacity issued by a registered medical practitioner attending on him or her or to whom he or she attended for medical or other examination, |
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(ii) refrain from behaviour which is likely to hinder his or her recovery, |
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(iii) see an officer of the Minister and to answer any reasonable enquiries by any such officer relating to his or her claim…. |
A person who meets the qualification conditions, is medically certified and provides whatever further information is requested of them by the Department in respect of an Illness Benefit claim remains in payment. Disqualifications under Article 24(1)(a), (c)(i) and (c)(ii) of the Regulations (as set out above) are not implemented in practice.
There have been no appeals, legal decisions or tribunals brought forward on the basis of suspension of benefit under section 46(1)(a) or 46(1)(b)(iii) of the Social Welfare Consolidation Act 2005.
II. concerning Part III (Sickness benefit), Article 18; Part IV (Unemployment benefit), Article 24(1), Limits to the duration of benefit:
i. with regard to days of benefit, to explain in its next report the difference in the number of days in a calendar week for the purpose of paying Illness or Jobseeker’s Benefits and the manner in which these days are defined and compensated under both schemes;
Response:
The social protection system evolves and develops in response to societal and economic circumstances. Jobseeker's Benefit provides income support for people who have lost work and are unable to find alternative employment. One of the fundamental qualifying conditions for the benefit is that a person must be available for full-time work.
However, it is recognised that a changing labour market has resulted in a move away from the more traditional work patterns, with a consequent increase in the number of atypical workers. In response, the Department of Social Protection conducted a ‘Review of the Application of the Unemployment Benefit and Assistance Schemes Conditions to workers who are not employed on a full-time basis’ in 2006. The review examined the application of jobseeker schemes conditions to workers who are employed on a part-time, casual or systematic short-time basis. It recommended that Sunday should be treated as a day of employment/unemployment as appropriate. This change in Jobseeker’s Benefit became effective from 21st February 2013. Since then the Jobseeker's Benefit week is based on a 7 day payment week which runs from Thursday to Wednesday[12]. Sunday is treated as any other day in the week, as a day of employment or unemployment as appropriate. In any single Jobseeker’s Benefit payment week, the number of days for which benefit is paid plus the number of days worked cannot exceed five. The net effect of this is that, where payment is due for less than a full week, Jobseeker's Benefit is paid for each day at the equivalent of one fifth of the weekly rate.
Jobseeker’s Benefit claims apply in respect of any day of unemployment which forms part of a period of interruption of employment provided the person is under pension age, proves unemployment in the prescribed manner, satisfies the contribution conditions, and has sustained a substantial loss of employment. A substantial loss of employment means that a person must be fully unemployed for at least 4 days in any period of 7 consecutive days.A day of interruption of employment means a day of unemployment or of incapacity for work.
Any 4 days of interruption of employment, whether consecutive or not, within a period of 7 consecutive days, including Sunday is treated as a period of interruption of employment and any two such periods that are not separated by more than 26 weeks are treated as one period of interruption of employment.
Illness Benefitprovides income support to insured people who are unable to work due to illness and who satisfy certain Pay Related Social Insurance (PRSI) contribution conditions.
Illness Benefit is based on a 6 day week and runs from Monday to Saturday. Sunday[13]is not treated as a day of incapacity for Illness Benefit purposes.
A person is entitled to Illness Benefit in respect of any day of incapacity for work which forms part of a period of interruption of employment. A day is not treated as a day of incapacity for work unless on that day the person is incapable of work. A day of interruption of employment means a day which is a day of incapacity for work or of unemployment.
Any 3 days of interruption of employment, whether consecutive or not, within a period of 6 consecutive days are treated as a period of interruption of employment. Any two such periods not separated by a period of more than 26 weeks are treated as one period of interruption of employment.
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 two such periods not separated by more than 3 days are treated as one period of incapacity for work.
Neither Sunday nor a day of paid holiday leave is treated as a day of incapacity for work. Any two periods of incapacity for work separated by a period of paid holiday leave are treated as one period of incapacity for work.
ii. with regard to periods of incapacity for work, to explain in its next report what period or periods of incapacity for work recognised in Irish law would constitute one case of sickness for the purpose of the Code, how many calendar days in one case of sickness may not be compensated as “days of incapacity for work”, and in what manner the waiting period for the first 6 days of a claim would be applied to each case of sickness;
Response:
The duration of Illness Benefit payable depends on the number of total contributions paid since the person first started work as follows:
- If the person has at least 260 weeks of reckonable social insurance contributions, Illness Benefit is paid for a maximum period of 2 years (624 payment days).
- If the person has between 104 and 259 weeks of reckonable social insurance contributions, Illness Benefit is paid for a maximum period of 1 year (312 payment days).
One case of sicknessmay continue in payment subject to the limitations outlined above until the person returns to work or ceases to claim Illness Benefit.
Illness Benefit does not operate according to a fixed calendar week. The claim commences on the first day of illness and the first 6 calendar days of incapacity for work are treated as waiting days with no monetary compensation. A credited contribution for the waiting day period is applied which is reckonable towards qualification for future claims. Payment of Illness Benefit is then made on the basis of a 6 day week (Sunday is excluded). It is paid at a weekly rate rather than a daily rate so once the waiting days have been served the issue of not being paid for days of incapacity does not arise. Waiting days do not have to be served in cases of sickness where the periods of incapacity are not separated by more than 3 days or in certain other cases where the periods of incapacity are linked through a claim for another social insurance payment and the latter period of incapacity is not separated from that claim by more than 3 days.
iii. with regard to age limit, Articles 14 and 20, to explain in its next report how protection under Parts III and IV of the Code is ensured to an employee who has fallen sick or lost his/her employment after attaining the age of 66 years but has not yet paid 520 contributions required for receipt of State Pension (Contributory);
Response:
Illness Benefit and Jobseeker’s Benefit are social insurance payments for people of working age. The pension age will be increased from 66 to 68 by 2028, therefore the maximum age that a person will be eligible to claim these benefits will be aligned accordingly.
Currently, a person who is over State Pension age who does not have the 10 years (520 weeks) contributions paid for State Pension Contributory may make a claim for a State Pension (Non-Contributory).
The maximum rate of State Pension (Non-Contributory) is equivalent to 95% of the maximum rate of State Pension Contributory. While State Pension (Non-Contributory) is subject to a means test, over 70% of those who qualify do so at the maximum rate.
People in receipt of State Pensions who remain in employment no longer pay full rate social insurance contributions. Employees over 66 do not pay a contribution but their employer pays a social insurance contribution of 0.5% which qualifies the employee for Occupational Injuries Benefits.[14]
III. 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, taking into account the increasing fiscal space for welfare programmes, to ask the Department of Social Protection 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. This would be in view of better informing the Minister for Social Protection, the Parliament and the representative organisations of social partners and community groups of the policy option of meeting Ireland’s legal obligations under ratified international treaties on social security rights;
Response:
The strict constraints on expenditure growth under the EU Expenditure Benchmark rule require a focus on the totality of Gross Voted Current Expenditure. While moderate and sustainable expenditure growth is planned over the medium-term, increasing and competing public service demands will mean managing expenditure will be challenging, particularly given heightened expectations. In this context, additional funding requirements such as, budget measures over and above those provided for in the Ministerial ceilings published in Expenditure Report 2017 will have to be funded primarily through the re-prioritisation of existing funding resources within those ceilings. This is being underpinned by a Spending Review process which is being led by the Department of Public Expenditure and Reform. In this regard, capacity for new measures in the upcoming Budget 2018 is extremely limited.
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)[15], 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, however, it is not possible for the SWITCH model to simulate this impact without significant developments to the model.
The Irish Government considers that the qualifying periods for Jobseeker’s Benefit and Illness Benefit are in conformity with Articles 18 and 23 of the Code respectively.
Calculating the costs for introducing a measure to reduce the 6 day waiting period for Illness Benefit to 3 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 3 days to 6 days was €22m for a full year. It is considered that introducing a measure to reduce the 6 day waiting period for Illness Benefit to 3 days would incur a similar level of expenditure.
Ireland remains determined to meet the requirement of all accepted parts of the Code. It’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.
IV. concerning Part IV (Unemployment benefit), Article 68, suspension of benefit:
i. with regard to the sanctions which apply in the case of refusals to engage with prescribed employment or activation measures, to explain in its next report to what extent “prescribed” employment, training or similar activation measures are deemed to be “suitable” in terms of Article 20 of the Code and what is considered to be “good cause” for refusal to participate in such measures;
Response:
The activation and employment support services provided by the Department of Social Protection are designed to help jobseekers secure employment. In line with the principle of rights and responsibilities jobseekers are entitled to be provided with these services but are also required to engage with the services when they are made available to them. These services include group or individual activation meetings, suitable education, training or development opportunities or specified employment programmes and schemes as statutorily prescribed.
The Irish Government considers the employment, training and activation measures prescribed in Regulation SI 259 of 2013 and listed below, as being suitable in terms of Article 20 of the Code.
- Community Employment.
- A course of training or development provided by or on behalf of FÁS.
- A course of training or development provided by or on behalf of a body replacing FÁS established by or under an enactment (to be known as SOLAS).
- A course of education, training or development provided by or on behalf of a Vocational Education Committee (VEC).
- A course of education, training or development provided by or on behalf of an Education & Training Board (ETB).
- Such other course of education, training or development as may be approved by or on behalf of the Minister from time to time.
Failure, without good cause, to engage with the services can result in a reduction in the payment to the jobseeker. However, reductions are only applied after the jobseeker has been given due notice on two occasions and an opportunity to provide an explanation for their non-engagement and a further opportunity to re-engage with the services.
Good causein the context of activation and employment support services means all reasonable excuses put forward by a jobseeker for their non-engagement with a stage in the activation service are accepted. Examples include a medical/dental appointment, attendance at a funeral or a prior documented appointment or commitment. Currently less than 1% of jobseekers are on a reduced rate of payment relating to their non-engagement with the Department’s activation and employment support services.
Therefore, the Irish Government considers that the sanctions which apply in the case of refusals to engage with prescribed employment or activation measures are in compliance with Article 68(h) of the Code.
ii. 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;
Response
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 relevant text now reads as follows: Disqualifications for up to 9 weeks:
A person may be disqualified from receipt of JB in certain circumstances. Any period during which a person is disqualified is counted as part of the continuous period of unemployment.
A person who would otherwise be entitled to payment may be disqualified for receiving JB for such period as may be determined by a Deciding Officer, but in any case not exceeding 9 weeks, for any of the following reasons:
Refusal of an offer of suitable employment
Loss of employment because of wilful misconduct
Leaving employment voluntarily without just cause
Refusal or failure to engage with activation measures where penalty rates applied
If under the age of 55 and made redundant, the person has received a lump-sum redundancy payment in excess of a specified amount.
(a) Refusal of offer of suitable employment
A disqualification of up to 9 weeks may be imposed if the Deciding Officer is satisfied that customer refused offer of suitable employment. Each case is examined with regard to the particular circumstances that apply to it.
(b) Loss of Employment through his/her own misconduct
A disqualification of up to 9 weeks may be imposed if the Deciding Officer is satisfied from the evidence before him/her that the reason the person lost his/her employment was due to his/her own misconduct and the misconduct was wilful and has directly caused the loss of the employment. The period of disqualification may only be imposed from date that the person lost his/her employment.
Decisions on claims for statutory social welfare schemes including Jobseeker’s Benefit are made by Deciding Officers who are appointed by the Minister for Social Protection. All decisions by Deciding Officers are guided by the rules of natural justice and officers are directed that in exercise of their statutory decision making functions they must determine each case on its own merits. Deciding Officers are advised to examine each case 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.
V. Part VII (Family benefit), Article 43, qualifying period of residence:
i. to indicate in its next report what conditions a protected employee or his child have to fulfil to acquire a right to reside in Ireland;
ii. to demonstrate in its next report that the habitual residence condition is applied in such a way as to ensure provision of Child Benefit to all children of protected employees who are legally present in Ireland and have ordinarily resided there for six months;
For the purposes of social welfare, section 246(6) of the Social Welfare Consolidation Act 2005 (as amended) sets out those persons who shall be taken as having a right to reside in Ireland. Such persons include those to whom Directive 2004/38/EC on the right of citizens of the Union and their family members to move and reside freely within the territory of the Member States applies. This Directive wastransposed into Irish legislation by SI 548 of 2015.
Child Benefit, is defined as a Family Benefit in accordance with Regulation (EC) No 883/2004 on the coordination of social security systems and is payable to a person who qualifies for EU migrant worker status for qualified children who are either resident in Ireland or resident in another EEA State. The Department of Social Protection liaises with social protection authorities of the other Member State in order to ensure that full entitlement to Child Benefit is received.
Any non EEA national, who has previously worked in another EEA State, and is currently employed or self-employed in the State, and;
- is legally resident i.e. holds a current residence permit,
- is lawfully employed in accordance with a work permit where so required and in accordance with the terms of his/her residence permit,
- is subject to Irish Pay Related Social Insurance and
- whose dependants currently reside within Ireland or within another EEA State
is not subject to the provisions of habitual residence in order to access Child Benefit.
Once evidence of legal residence in Ireland is provided, non EEA nationals who are engaged in employment or self-employment and have at least one month of insurable employment or six months of insurable self-employment prior to the date of their claim and whose families also reside with them in Ireland can access Child Benefit in the same way as an Irish citizen.
Comprehensive guidelines on the application of the provisions with respect to habitual residence are in operation by the Department of Social Protection. These guidelines, which are used by Deciding Officers, are regularly updated. They are accessible via the Department’s website at http://www.welfare.ie/en/Pages/Habitual-Residence-Condition--Guidelines-for-Deciding-Offic.aspx
VI. concerning Part XI (Standards to be complied with by periodical payments), Article 66, reference wage, to explain in its next report the substantial differences in the calculated amounts of the skilled and unskilled workers’ wages, particularly in cases where the replacement rate of benefits recalculated on the basis of the Eurostat Structure of Earnings (SES) reference wage would not attain the percentage prescribed by the Code;
Response:
On the recommendation of the Committee of Ministers, Ireland has compared the data on wages given in its 2014 report with that presented in thesimplified template included in the ILO conclusions based on data obtained from the Eurostat Structure of Earnings Survey (SES) of 2016. Using the figures provided in the simplified template, Ireland has recalculated its figure for unskilled male reference wage to €3,113 per month/€715.63 per week as sourced from Eurostat SES data. The following tables show that the benefits provided in Ireland would attain the percentage as set out in the table of “Periodical payments to standard beneficiaries” under the Schedule to Part XI of the Code.
Recalculation based on the Eurostat mean wage of €3,113/month (i.e. €715.63)
|
Part III - Illness Benefit / Reference Wage (Couple with 2 Children) |
|||||||
|
Period |
Wage |
Allowance |
Total |
Benefit |
Allowance |
Total |
% |
|
2014 |
€715.63 |
€60.00 |
€775.63 |
€372.40 |
€60.00 |
€432.40 |
56% |
|
Part IV- Jobseeker's Benefit / Reference Wage (Couple with 2 Children) |
|||||||
|
Period |
Wage |
Allowance |
Total |
Benefit |
Allowance |
Total |
% |
|
2014 |
€715.63 |
€60.00 |
€775.63 |
€372.40 |
€60.00 |
€432.40 |
56% |
|
Part V - State Pension (Contributory)/Reference Wage-Couple both aged between 66 and 80 - No family Allowance |
|||
|
Period |
Wage |
Benefit |
% |
|
2014 |
€715.63 |
€436.60 |
61% |
|
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 |
% |
|
|
2014 |
€715.63 |
€60.00 |
€775.63 |
€253.10 |
€60.00 |
€313.10 |
40% |
A detailed report of the source of Ireland’s reference wage data was provided in the 43rd report in accordance with Article 74 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.
For the 2015 reference wage, the CSO has provided the following figures and information in line with the simplified template:
Reference Wage
€-Monthly
2014 2015 Index Factor
Unskilled 3,113 3,118 0.17%
Skilled 3,534 3,540 0.17%
The CSO does not currently have the data available to produce the reference wage for 2015 using the same methodology as 2014 although it will be available later in the year. However, they have provided an estimated figure calculated by taking the 2014 figures and applying an index factor of 0.17% based on earnings data from the Earnings, Hours and Employment Costs Survey (EHECS).
The 2014 figures were based on specific cross tabulation of Occupation and Sector. The same Occupation breakdown is not available from the EHECS so the data for all occupations in NACE sector C (Manufacturing), which was the sector used for both reference wages calculated for 2014 has been used. The percentage change in average weekly earnings between Q4 2014 and Q4 2015 has been used to provide a provisional figure for 2015.
The NACE sector used for 2014 is the broad category NACE sector C (Manufacturing) and aligns with Article 66(4)(a) of the Code. When the SES data for 2015 becomes available the CSO will provide a re-calculated 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.
VII. concerning Part XIII (Miscellaneous provisions), Article 74(1), to provide in its next report the above-mentioned missing information, technical clarifications, provisions of the national legislation and updated statistics;
Response:
The contents of the Consolidated Report have been noted and the missing information, technical clarifications, provisions of the national legislation and updated statistics, insofar as they are available, will be updated and returned by December 2017.
VIII. concerning sources and consistency of statistical data, to check the above-mentioned data for consistency, fill in the lacking information in its next report, align the data for the same time basis to enable comparison, and specify the official sources of statistics which shall henceforth be continuously used by the Government for this purpose.
Response:
Ireland will continue to ensure the consistency of statistical data and referencing as well as providing full information in respect of all accepted parts of the Code in future reports under Article 74.
With respect to statistical comparison, when National microdata is sent to Eurostat by Ireland, Eurostat create a set of harmonised European Indicators (as published in the country profile) which have different definitions to published National Indicators. As such, they are not directly comparable with national indicators.
As stated in previous reports on the application of the Code, Eurostat indicators are not used to monitor key poverty trends at national level. 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 thresholds quoted in the ILO Technical Note 2016 are based on Eurostat 40% and 50% thresholds, whereas the Irish Government uses the standard 60% median threshold in line with the approach across Europe. Progress is monitored in the annual Social Inclusion Monitor. The Social Inclusion Monitor 2015 was published in May 2017 and is available at:
http://www.welfare.ie/en/Pages/Social-Inclusion-Monitor.aspx
It is important to use national poverty data when assessing the adequacy of national welfare rates. 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. Furthermore, from an analytical perspective the national poverty data and the national welfare rates both use the same equivalence scales, whereas Eurostat do not. The income concept also differs between the two data sources. The following table shows the impact of these differences in the median equivalised income poverty thresholds:
|
2015 weekly |
National |
EU |
Difference |
|
Median poverty threshold (40%) |
€153.32 |
€166.25 |
€12.94 |
|
Median poverty threshold (50%) |
€191.64 |
€207.82 |
€16.17 |
|
Median poverty threshold (60%) |
€229.97 |
€249.39 |
€19.41 |
[1] All statistical figures relate to 2015 as this is the most recent material available and 2015 insurance coverage figures are provisional until the 2016 report is published.
[2] Further detail of the 2015 figure is set out in the response given to - VI. Concerning Part XI (Standards to be complied with by periodical payments), Article 66 reference wage contained in the Appendix.
[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] Further detail of the 2015 figure is set out in the response given to - VI. Concerning Part XI (Standards to be complied with by periodical payments), Article 66 reference wage contained in the Appendix.
[5] 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] Further detail of the 2015 figure is set out in the response given to - VI. Concerning Part XI (Standards to be complied with by periodical payments), Article 66 reference wage contained in the Appendix.
[8] 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.
[9] Intreo is the integrated employment and income support service which was launched in October 2012.
[10] Contribution Class H includes non-commissioned officers and enlisted personnel of the Irish Defence Forces.
[11] 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.
[12] Social Welfare Consolidation Act 2005 (as amended) Section 62(10C) –Substituted by 16(1)(e) of the Social Welfare Act 2012. http://www.irishstatutebook.ie/eli/2012/act/43/enacted/en/html
[13] Social Welfare Consolidation Act 2005 (as amended) Section 40(3)(f) –Substituted by s. 4(1)(c)(ii) of the Social Welfare and Pensions Act 2013. http://www.irishstatutebook.ie/eli/2013/act/38/enacted/en/html
[14] Information regarding Occupational Injuries Benefit, the definition of employment injury, the qualifying and waiting periods and the duration of benefits can be accessed via http://www.welfare.ie/en/Pages/oib.aspx.
[15] The Survey on Income and Living Conditions (SILC) in Ireland is a household survey compiled by the Central Statistics Office (CSO) covering a broad range of issues in relation to income and living conditions. It is the official source of data on household and individual income and also provides a number of key national poverty indicators, such as the at risk of poverty rate, the consistent poverty rate and rates of enforced deprivation.