Social Welfare (Amendment) Act, 1978

Amendment of section 6 of Act of 1952.

5.—(1) The following is hereby substituted for section 6 (1) of the Act of 1952:

“(1) (a) Employment contributions shall be paid by employed contributors and their employers in accordance with this section.

(b) Subject to paragraphs (c) and (d) of this subsection, to subsection (10) of this section and to regulations under section 12 of this Act, where in any contribution year a payment is made to or for the benefit of an employed contributor in respect of reckonable earnings of that employed contributor, there shall be payable an employment contribution comprising—

(i) a contribution by the employed contributor at the rate of 3.2 per cent and

(ii) a contribution by his employer at the rate of 7.5 per cent

of the amount of the reckonable earnings to which such payment relates.

(c) Where in a particular contribution year an employed contributor's reckonable earnings have amounted to the sum of £5,000 and contributions under paragraph (b) of this subsection have been paid in respect of those reckonable earnings, no further such contribution shall be payable in respect of any reckonable earnings of that employed contributor in that contribution year.

(d) Where in a particular contribution year an employed contributor is employed by two or more employers concurrently (as defined in regulations under section 11 of this Act (inserted by the Social Welfare (Amendment) Act, 1978)), the provisions of paragraph (c) of this subsection shall, in relation to contributions under paragraph (b) (ii) of this subsection, apply to the reckonable earnings from each of the employments separately.”.

(2) In the period commencing on the 6th day of April, 1979, and ending on the 5th day of April, 1980, paragraph (b) of section 6 (1) of the Act of 1952 (inserted by this Act) shall be construed as if rates of 3.4 per cent and 7.8 per cent. respectively, were substituted for those specified in subparagraphs (i) and (ii) of that paragraph.

(3) The following is hereby substituted for section 6 (2) of the Act of 1952:

“(2) (a) Subject to paragraph (c) of this subsection, a voluntary contribution shall be payable by a voluntary contributor who is under pensionable age in each contribution year at such time or times and in such manner as the Minister shall prescribe—

(i) at a percentage rate of the amount of the reckonable income of the contributor in the preceding contribution year, or

(ii) where there was no such income or such income did not exceed such amount as may be prescribed, at a percentage rate of such amount as the Minister shall so prescribe.

(b) A percentage rate for the purpose of paragraph (a) of this subsection shall be—

(i) in the case of a voluntary contributor who, immediately before ceasing to be an employed contributor, was employed in employment in respect of which the employment contributions payable are not reckonable for the purposes of old age (contributory) pension, 1.7 per cent,

(ii) in the case of a voluntary contributor who, immediately before ceasing to be an employed contributor, was employed in employment in respect of which the employment contributions payable are reckonable for the purposes of old age (contributory) pension, 4.4 per cent, and

(iii) in the case of a person to whom section 17 of the Social Welfare Act, 1975 , applied and who, by virtue of compliance with section 17 (2) of that Act, continues to be a voluntary contributor, 2.7 per cent.

(c) A contribution under paragraph (a) of this subsection shall not be payable in respect of reckonable income in any contribution year which exceeds the sum specified in subsection (1) (c) of this section.

(d) ‘Reckonable income’ for the purposes of this subsection means, subject to regulations, income derived from any employment, including any trade, business, profession, office or vocation.”.

(4) Each rate specified in section 6 (1) (b) and 6 (2) (b) of the Act of 1952 (inserted by this section) and in subsection (2) and the sum specified in section 6 (1) (c) of the Act of 1952 (inserted by this section), shall be either confirmed or varied by regulations made by the Minister before the commencement of subsections (1) to (3).

(5) Section 6 (4) of the Act of 1952 is hereby repealed and the following is substituted therefor:

“(4) (a) The Minister may by regulations vary the sum specified in subsection (1) (c) of this section and the sum so varied shall take effect from the beginning of the contribution year following that in which the regulations are made.

(b) When making regulations under this subsection the Minister shall take into account any changes in the average earnings of workers in the transportable goods industries as recorded by the Central Statistics Office since the date by reference to which the sum specified in subsection (1) (c) of this section was last determined.

(c) Where regulations under this subsection are proposed to be made, a draft of the proposed regulations shall be laid before each House of the Oireachtas and the regulations shall not be made until a resolution approving of the draft has been passed by each House.”.

(6) The following is hereby substituted for section 6 (10) of the Act of 1952:

“(10) The employment contribution payable by the employed contributor under subsection (1) (b) (i) of this section or under regulations made under section 12 of this Act shall not be payable in the case of an employed contributor who is in receipt of any of the following—

(a) a widow's (contributory) pension,

(b) a widow's (non-contributory) pension,

(c) deserted wife's benefit,

(d) a deserted wife's allowance,

(e) death benefit by way of widow's pension under the Social Welfare (Occupational Injuries) Act, 1966 ,

(f) a social assistance allowance under section 8 of the Social Welfare Act, 1973 ,

(g) a payment corresponding to a pension referred to in paragraph (a) or (e) of this subsection from the competent authority of a Member State (other than the State) of the European Economic Community under legislation to which the regulations of the Community on the application of social security schemes to employed persons and their families moving within the territory of the Community apply.”.