S.I. No. 134/2001 - Social Welfare (Consolidated Contributions and Insurability) (Amendment) (No. 2) (Contribution Rates) Regulations, 2001

The Minister for Social, Community and Family Affairs, in exercise of the powers conferred on him by sections 4 (as amended by section 17 of the Social Welfare Act, 2000 (No. 4 of 2000)), 11 (as amended by section 28 of the Social Welfare Act, 2001 (No. 5 of 2001)), 14, 19 (as amended by section 9 of the Social Welfare Act, 2001 ), 24C, 26 and 27 of the Social Welfare (Consolidation) Act, 1993 (No. 27 of 1993), hereby makes the following Regulations:-

Citation and construction.

1. (1)   These Regulations may be cited as the Social Welfare (Consolidated Contributions and Insurability) (Amendment) (No. 2) (Contribution Rates) Regulations, 2001.

(2)   These Regulations and the Social Welfare (Consolidated Contributions and Insurability) Regulations, 1996 to 2001 shall be construed together as one and may be cited as the Social Welfare (Consolidated Contributions and Insurability) Regulations, 1996 to 2001.

Commencement.

2.      These Regulations shall come into operation on 6 April, 2001.

Definitions.

3.      In these Regulations, “the Principal Regulations” means the Social Welfare (Consolidated Contributions and Insurability) Regulations, 1996 ( S.I. No. 312 of 1996 ).

Amendments consequential on removal of employer PRSI ceiling.

4.   The Principal Regulations are amended by -

(a)      the deletion of articles 23 (3), 24, 38, and 51,

(b)      the deletion in paragraph (b) of article 23 (1) of “or would have been payable but for the provisions of section 10(1) (c) or (e)”,

(c)      the substitution in article 25 for sub-article (1) of the following sub-article:

“(1)   Where a person -

(a)      becomes a self-employed contributor subsequent to being an employed contributor in any contribution year, or

(b)      is a self-employed contributor prior to being an employed contributor in any contribution year,

and is a person to whom paragraphs (a) or (c) of section 18(1) applies, self-employment contributions shall be payable by him at the percentage amount or the amount specified in the said paragraphs, whichever is the greater.”,

(d)      the deletion in article 49 (1) of “or would have been payable but for the provisions of section 10(1) (e)”,

(e)      the deletion in article 68 of “or would have been paid but for section 10 (1) (e)” in each place where those words occur, and

(f)      the deletion in article 70 (1) of“, or would have been paid but for section 10 (1) (e)”.

Voluntary contributions - removal of minimum rates.

5.   The Principal Regulations are amended by the deletion of article 32.

Employment contributions - new rates.

6.      The Principal Regulations are amended by -

(a)      the substitution in article 86 (2) (a) (i) (as amended by article 2(a) of the Social Welfare (Consolidated Contributions and Insurability) (Amendment) (No. 3) Regulations, 1998 ( No. 189 of 1998 )) for “3.83 per cent.” of “3.33 per cent.”, and

(b)      the substitution in article 87 (2) (a) (i) (as amended by article 3 of the Social Welfare (Consolidated Contributions and Insurability) (Amendment) (Defence Forces) Regulations, 1998 ( S.I. No. 104 of 1998 )) for “4.4 per cent.” of “3.9 per cent.”.

The Minister for Finance hereby consents to the making of the foregoing Regulations.

EXPLANATORY NOTE

(This note is not part of the Instrument and does not purport to be a legal interpretation.)

The Social Welfare Act, 2001 provides for a number of changes to the social insurance (PRSI) provisions. These Regulations provide for the consequential amendments to the regulations governing the payment and collection of insurance contributions as follows:

-       amendments required on foot of the abolition of the Employer PRSI Ceiling.

-       the deletion of Article 32 of the Principal Regulations, which provides for the minimum Voluntary Contribution rate (these rates are now contained in primary legislation);

-       a reduction of 0.5% in PRSI Classes E and H, payable by employees. Class E social insurance contributions are payable by Ministers of Religion, and in this Regulation are reduced from 3.83% to 3.33%. Class H social insurance contributions are payable by non-commissioned Army Officers, and enlisted personnel of the Defence Forces. In this Regulation, the contribution is reduced from 4.4% to 3.9%.