Developing a Fully Inclusive Social Insurance Model - Welfare.ie

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APPENDIX BPRSI Class JTable B1: Number of Hours Work Needed to Reach Insurability Threshold at Average Earnings andMinimum Wage.Insurability Average Hours of Work Minimum Hours of WorkYear Threshold Hourly Pay Required Wage Required€ € €1993 38.09 8.08 4.7 n/a n/a1998 38.09 9.53 4.0 n/a n/a2000 38.09 10.66 3.6 5.59 6.82003 38.00 13.30 2.9 6.35 6.0The table shows how changes in the average hourly earnings has increased by 64% from 1993 to 2002,while the hours worked by the average workers to gain a Class A contribution has fallen from 4.7 hoursto less than three hours over the same period. If the threshold is compared to the minimum wage, thehours required has similarly fallen though less dramatically.DEVELOPING A FULLY INCLUSIVE SOCIAL INSURANCE MODEL45
APPENDIX CJobsharers/Work sharingWork sharing refers to arrangements agreed between an employer and an employee to work less thanthe standard 5 day, 40 hour week. Examples can include a 4 day week, a 3 day week, a week on/week off,mornings only, etc. More often than not, the work attendance pattern will overlap with the weeks ofinsurable employment as defined in social welfare legislation as each successive 7 day weekcommencing on the 1st January. The insurance record of work sharers is recorded with Class Acontributions in respect of each week they have worked provided their weekly earnings exceed €38.The type of work sharing involved may affect the amount of PRSI the employer and the employee payand may also affect the number of PRSI contributions the employee is awarded. In some years theemployee may be awarded only 26 or 39 weeks contributions because of the work sharing patterns. Theexact effect depends on the attendance pattern worked and the level of earnings in any given week.Table C1: Effect of Workharing Pattern on PRSI contributions dueWorksharing PatternTotal Contributions for YearFull Time 524 days every week 523 weeks on/1 week off (Mon-Fri) 52 or 39Working Day 9am - 3pm every day 523 days (same days each week) 522 days (same days each week) 521 day (same day each week) 52Mornings only 52Afternoons only 52Working week on/off (Mon-Fri) 52 or 26Working a fixed split week 52 or 26The total number of contributions, both paid and credited, can be significant in terms of qualification ofbenefit although it is difficult in advance to state the precise importance of this especially for long-termbenefits. However the following table outlines potential scenarios where a person working Monday toFriday week on/week off, would be affected in long-term for pension purposes. This scenario does nottake account of periods of unpaid leave, or breaks in employment where crediting contributions wouldnot be awarded. It is also predicated on the assumption that earnings remain above the insurable limitfor the full period of employment.46Department of <strong>Social</strong> and Family Affairs
Page 1 and 2: DEVELOPING A FULLY INCLUSIVESOCIAL
Page 3 and 4: 1.2 Structure of ReportThis report
Page 5 and 6: The Table also shows the proportion
Page 7 and 8: social insurance for a greater prop
Page 9 and 10: 1.7 Moving towards full inclusivene
Page 11 and 12: 1.8 Wider policy contextRecent Econ
Page 13 and 14: The Working Group recognizes the wi
Page 15 and 16: therefore would be eligible for the
Page 17 and 18: to issues of social security, leave
Page 19 and 20: The Working Group noted that the re
Page 21 and 22: The issues raised by the Group in r
Page 23 and 24: An analysis of the impact on a pers
Page 25 and 26: 4.3 Working Group DiscussionsThe WG
Page 27 and 28: 5.3 Working Group DiscussionsThe Wo
Page 29 and 30: them. If an employer gives an emplo
Page 31 and 32: 7.3 Working Group DiscussionsA numb
Page 33 and 34: 9. Level of Maternity Benefit9.1 Cu
Page 35 and 36: The option of removing the percenta
Page 37: USA. There is also an agreement wit
Page 41 and 42: ehalf of their employees have voice
Page 43 and 44: 5. Impact of Atypical and Part-Time
Page 45: APPENDIX ARecipients of Social Insu
Page 49 and 50: APPENDIX DNumbers in atypical worki
Page 51 and 52: APPENDIX FMaternity Benefit Analysi
Page 53 and 54: The table shows that the Maternity
Page 55 and 56: Table F.5: Effective tax rate in 20
Page 57 and 58: " To increase the Maternity Ceiling
Page 59: PUBLISHED DECEMBER 2004

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