Social Welfare Act, 1991

Increase in earnings ceiling and minimum contributions payable by self-employed contributors.

13.—(1) The Principal Act is hereby amended by the substitution for section 17C (inserted by section 11 of the Act of 1988) of the following section:

“Rates of self-employment contributions and related matters.

17C.—Self-employment contributions shall be paid by self-employed contributors in accordance with the following provisions:

(a) Subject to paragraphs (b), (d) and (i), where in any contribution year a self-employed contributor has reckonable income there shall be payable by him a self-employment contribution which shall be of an amount equal to 5 per cent. of the reckonable income or the amount of £234, whichever is the greater.

(b) Where for any contribution year a self-employed contributor is informed by the Revenue Commissioners that he is not required to make a return of income within the meaning of section 48 (1) of the Finance Act, 1986 , self-employment contributions shall be paid by the self-employed contributor (whether by instalments or otherwise as may be prescribed) amounting to £116 in respect of that contribution year.

(c) Subject to paragraphs (d) and (i), where in any contribution year a payment is made to a self-employed contributor in respect of reckonable emoluments of that self-employed contributor, there shall be payable by him a self-employment contribution which shall be of an amount equal to 5 per cent. of reckonable emoluments or the amount of £234, whichever is the greater.

(d) Contributions under paragraph (a) or (c) shall not be payable in any contribution year on so much (if any) of the reckonable income or reckonable emoluments for that year of a self-employed contributor as is in excess of £18,000.

(e) Subject to regulations under section 17D, where a self-employment contribution has been paid by a self-employed contributor of not less than the amount that he is liable to pay under paragraph (a) or the amount specified in paragraph (b), whichever is appropriate, he shall be regarded as having paid contributions for each contribution week in that contribution year and, where the contribution paid is less than the appropriate amount aforesaid no contribution shall be regarded as having been paid by the self-employed contributor in respect of any week of that contribution year.

(f) The Minister may by regulations vary the sum specified in paragraph (d) and such variation shall take effect from the beginning of the contribution year following that in which the regulations are made.

(g) Where regulations under paragraph (f) 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 such House.

(h) Subject to subsection (3) of section 17G, self-employment contributions shall be disregarded in determining whether the contribution conditions for any benefit other than old age (contributory) pension, widow's (contributory) pension or orphan's (contributory) allowance are satisfied.

(i) A person who but for this paragraph would be liable for contributions of £234 under both paragraph (a) and paragraph (c) shall be liable only for a single contribution of £234.”.

(2) Section 17 of the Act of 1988 is hereby amended by the substitution in paragraph (b) for “17C (h)” of “17C (f)”.

(3) This section shall come into operation on the 6th day of April, 1991.