Social Welfare Act , 1988

PART I Preliminary

1 Short title, construction and collective citations.

1.—(1) This Act may be cited as the Social Welfare Act, 1988.

(2) The Social Welfare Acts, 1981 to 1987, and this Act (other than section 27) shall be construed as one.

(3) The Social Welfare Acts, 1981 to 1987, and this Act (other than section 27) may be cited together as the Social Welfare Acts, 1981 to 1988.

(4) Section 27 of this Act and the Employers' Employment Contribution Scheme Act, 1981, may be cited together as the Employers' Employment Contribution Scheme Acts, 1981 and 1988.

2 Definitions.

2.—(1) In this Act—

“the Act of 1985” means the Social Welfare Act, 1985;

“the Act of 1986” means the Social Welfare Act, 1986;

“the Act of 1987” means the Social Welfare Act, 1987;

“the Income Tax Acts” has the meaning assigned to it by section 3 of the Income Tax Act, 1967;

“the Principal Act” means the Social Welfare (Consolidation) Act, 1981.

(2) References in this Act to any enactment shall be construed as references to that enactment as amended or extended by any subsequent enactment.

PART II Increases

3 Social insurance benefits (new rates).

3.—(1) The Principal Act is hereby amended by the substitution for Parts I to IV (inserted by section 2 of the Act of 1987) of the Second Schedule thereto of the Parts set out in Schedule A to this Act.

(2) This section shall come into operation—

(a) in so far as it relates to unemployment benefit, on the 21st day of July, 1988,

(b) in so far as it relates to disability benefit, maternity allowance, injury benefit, disablement gratuity and disablement pension, on the 25th day of July, 1988,

(c) in so far as it relates to deserted wife's benefit, invalidity pension and retirement pension, on the 28th day of July, 1988, and

(d) in so far as it relates to death benefit under section 50, 51 or 52 of the Principal Act, old age (contributory) pension, widow's (contributory) pension and orphan's (contributory) allowance, on the 29th day of July, 1988.

4 Social assistance payments (new rates).

4.—(1) The Principal Act is hereby amended by the substitution for Parts I and III (inserted by section 3 of the Act of 1987) of the Fourth Schedule thereto of the Parts set out in Schedule B to this Act.

(2) This section shall come into operation—

(a) in so far as it relates to unemployment assistance, on the 20th day of July, 1988,

(b) in so far as it relates to deserted wife's allowance, prisoner's wife's allowance, social assistance allowance and single woman's allowance, on the 28th day of July, 1988,

(c) in so far as it relates to old age pension, blind pension, widow's (non-contributory) pension and orphan's (non-contributory) pension, on the 29th day of July, 1988, and

(d) in so far as it relates to supplementary welfare allowance, on the 25th day of July, 1988.

5 Family Income Supplement.

5.—(1) Section 232B (inserted by section 13 of the Social Welfare Act, 1984) of the Principal Act is hereby amended by—

(a) the substitution in paragraph (a) for “£104” (inserted by section 4 of the Act of 1987) of “£108”, and

(b) the substitution for paragraph (b) (amended by the said section 4) of the following paragraph:

“(b) in the case of a family which includes more than one child, £108 increased by—

(i) £23 for each additional child up to and including the fifth child, or

(ii) such amounts as may be prescribed for each additional child up to and including such number of children as may be prescribed.”.

(2) Section 232C(2) (inserted by section 13 of the Social Welfare Act, 1984) of the Principal Act is hereby amended by the substitution for paragraph (b) (amended by section 4 of the Act of 1987) of the following paragraph:

“(b) in the case of a family which includes more than one child, £16 increased by—

(i) £7 for each additional child up to and including the fifth child, or

(ii) such rates as may be prescribed for each additional child up to and including such number of children as may be prescribed.”.

(3) Subsection (1) of this section shall apply to any claim for family income supplement which is received on or after the 28th day of July, 1988.

6 Pay-related social insurance contributions (increase in earnings ceiling).

6.—(1) Section 10 (1) of the Principal Act is hereby amended by the substitution for paragraph (c) (inserted by section 5 of the Act of 1987) of the following paragraph:

“(c) Where in a particular contribution year an employed contributor's reckonable earnings have amounted to the sum of £16,200 and contributions under paragraph (b) 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.”.

(2) This section shall come into operation on the 6th day of April, 1988.

7 Employment contributions.

7.—(1) Section 65 of the Principal Act is hereby amended by the substitution in paragraphs (a) (ii) and (b) of subsection (2) for “0.43 per cent.” (inserted by section 7 of the Act of 1986) of “0.5 per cent.”.

(2) This section shall come into operation on the 6th day of April, 1988.

8 Pay-related benefit.

8.—(1) Section 73 (inserted by section 7 of the Act of 1987) of the Principal Act is hereby amended by the substitution for “£62” of “£66”.

(2) This section shall have effect in relation to any period of interruption of employment commencing on or after the 4th day of April, 1988.

9 Amendment of section 15 of Principal Act (regulations for contributions, etc.).

9.—Section 15 (1) of the Principal Act is hereby amended by the insertion after paragraph (c) of the following paragraph:

“(cc) the waiving of interest due on arrears of employment contributions.”.

PART III Social Insurance for the Self-Employed

10 Amendment of section 2 of Principal Act (interpretation generally).

10.—Section 2 (1) of the Principal Act is hereby amended—

(a) by the deletion of the definition of “qualifying contribution”, and

(b) by the insertion of the following definitions:

“‘insurable self-employment’ means self-employment of such a nature that a person engaged therein would be a self-employed contributor;

‘qualifying contribution’ means the appropriate employment contribution or self-employment contribution which was paid or would have been paid but for section 10 (1) (c) or section 17C (d) or (e) in respect of any insured person;

‘reckonable emoluments’, in relation to a self-employed contributor, means emoluments (other than reckonable earnings, non-pecuniary emoluments and such other emoluments as may be prescribed) to which Chapter IV of Part V of the Income Tax Act, 1967, applies, reduced by so much of the allowable contribution referred to in regulations 59 and 60 of the Income Tax (Employments) Regulations, 1960 (S.I. No. 28 of 1960) (inserted by the Income Tax (Employments) Regulations, 1972 (S.I. No. 260 of 1972)) as is deducted on payment of those emoluments;

‘reckonable income’, in relation to a self-employed contributor, means the aggregate income (excluding reckonable earnings, reckonable emoluments, non-pecuniary income and such other income as may be prescribed), from all sources for the contribution year as estimated in accordance with the provisions of the Income Tax Acts, but without regard to section 2 or section 18 of the Finance Act, 1969, or (save in the case of a person to whom paragraph 1 of Part IIA of the First Schedule applies) to Chapter 1 (inserted by the Finance Act, 1980) of Part IX of the Income Tax Act, 1967, after deducting from the income so much of any deduction allowed by virtue of the provisions referred to in section 33 of the Finance Act, 1975, as is to be deducted from or set off against that income in charging it to income tax;

‘self-employed contributor’ has the meaning assigned in section 17A;

‘self-employment contribution’ has the meaning assigned in section 17B.”.

11 Insertion of Chapter 1A in Part II of Principal Act.

11.—The Principal Act is hereby amended by the insertion in Part II after Chapter 1 of the following Chapter:

“Chapter 1A

INSURED PERSONS, SELF-EMPLOYMENT CONTRIBUTIONS

Self-employed contributors.

17A.—(1) Subject to this Act—

(a) every person who, being over the age of 16 years and under pensionable age (not being a person included in any of the classes of person specified in Part IIA of the First Schedule) who has reckonable income or reckonable emoluments shall be a self-employed contributor for the purposes of this Act, regardless of whether he is also an employed contributor,

(b) every person becoming for the first time either an employed contributor or a self-employed contributor shall there-by become insured under this Act and shall thereafter continue throughout his life to be so insured, and

(c) in the case of a person who, not having been an employed contributor at any time, becomes for the first time a self-employed contributor the first day of the contribution year in which he becomes a self-employed contributor shall be regarded as the date of entry into insurance.

(2) Subject to this Act, where a person ceases to be a self-employed contributor otherwise than by reason of attaining pensionable age and has qualifying contributions in respect of not less than 156 contribution weeks, he shall, on making application in the prescribed manner and within the prescribed period, be entitled to become an insured person paying contributions under this Act voluntarily (in this Act referred to as a voluntary contributor).

(3) A voluntary contributor shall if he becomes a self-employed contributor cease to be a voluntary contributor.

(4) Regulations may provide for—

(a) including among self-employed contributors classes of person or part of any such class of person specified in or included in Part IIA of the First Schedule,

(b) adding to the classes of person specified in Part IIA of the First Schedule,

(c) the modification of any of the provisions of this Act relating to self-employed contributors.

(5) Where regulations are proposed to be made for the purposes of subsection (4), a draft thereof 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.

(6) Subsection (1) shall come into operation on 6th April, 1988.

Payment of contributions into Social Insurance Fund.

17B.—(1) For the purposes of section 9 there shall, in addition to the contributions provided for by that section, be contributions (in this Act referred to as self-employment contributions) in respect of self-employed contributors.

(2) Self-employment contributions shall be paid into the Social Insurance Fund.

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 (k), where in any contribution year a self-employed contributor has reckonable income there shall be payable by him a self-employment contribution which shall—

(i) with effect from 6th April, 1988, be of an amount equal to 3 per cent. of the reckonable income or the amount of £208, whichever is the greater,

(ii) with effect from 6th April, 1989, be of an amount equal to 4 per cent. of the reckonable income or the amount of £208, whichever is the greater, and

(iii) with effect from 6th April, 1990, be of an amount equal to 5 per cent. of the reckonable income or the amount of £208, 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 £104 in respect of that contribution year.

(c) Subject to paragraphs (d) and (k), 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—

(i) with effect from 6th April, 1988, be of an amount equal to 3 per cent. of the reckonable emoluments or the amount of £208, whichever is the greater,

(ii) with effect from 6th April, 1989, be of an amount equal to 4 per cent. of reckonable emoluments or the amount of £208, whichever is the greater, and

(iii) with effect from 6th April, 1990, be of an amount equal to 5 per cent. of reckonable emoluments or the amount of £208, 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 £16,200.

(e) The self-employment contribution payable by a self-employed contributor in accordance with paragraph (a), (b) or (c), whichever is appropriate, shall not be payable in the case of a self-employed contributor who is in receipt of any of the following:

(i) a widow's (contributory) pension;

(ii) a widow's (non-contributory) pension;

(iii) deserted wife's benefit;

(iv) deserted wife's allowance;

(v) death benefit by way of widow's pension under section 50;

(vi) a social assistance allowance under section 197; or

(vii) a payment corresponding to a pension referred to in subparagraph (i) or (v) from the competent authority of a Member State (other than the State) of the European Communities under legislation to which the regulations of the Communities on the application of social security schemes to employed persons and their families moving within the territory of the European Communities apply.

(f) During the period of three months beginning on 1st October, 1990, the Minister shall, in consultation with the Minister for Finance, review the provisions of this Chapter and of Chapters 7 and 11 insofar as they relate to self-employed contributors.

(g) 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.

(h) 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.

(i) Where regulations under paragraph (h) 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.

(j) 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.

(k) A person who but for this paragraph would be liable for contributions of £208 under both paragraph (a) and paragraph (c) shall be liable only for a single contribution of £208.

Regulations providing for determination of contributions payable.

17D.—(1) Subject to subsection (2), regulations may provide for the determination of the contributions payable, the amount or rates of such contributions, and the contribution weeks in respect of which such contributions shall be regarded as having been paid, in the case of a person who—

(a) becomes for the first time a self-employed contributor,

(b) ceases to be a self-employed contributor,

(c) is both an employed contributor and a self-employed contributor whether concurrently or not,

(d) in any contribution year has reckonable emoluments but does not have reckonable income,

(e) in any contribution year has both reckonable emoluments and reckonable income,

(f) in any contribution year has reckonable emoluments which relate to a period less than the full year, or

(g) in respect of the contribution year ended 5th April, 1989, is liable to pay a self-employment contribution of £104.

(2) Regulations made under subsection (1) shall not cause an insured person to pay contributions on the excess over £16,200 of the aggregate of his total reckonable earnings, reckonable emoluments and reckonable income in any contribution year.

(3) For the purposes of this section ‘contributions’ means employment contributions payable under section 10 and self-employment contributions payable under section 17C.

Regulations varying rates of payment of self-employment contributions.

17E.—(1) Regulations may alter the rates or amounts of self-employment contributions.

(2) Where regulations under subsection (1) are proposed to be made, a draft thereof 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.

Regulations for collection of self-employment contributions, etc.

17F.—(1) For the purposes of self-employment contributions payable under section 17C (b) and (c), regulations may provide for—

(a) the time and manner of payment of self-employment contributions,

(b) the collection and the recovery of and the furnishing of details in relation to self-employment contributions,

(c) the charging of interest on arrears of self-employment contributions,

(d) the waiving of interest due on arrears of self-employment contributions,

(e) the estimation of amounts due in respect of self-employment contributions and appeals in relation to such estimates,

(f) the furnishing of returns by employers in relation to periods of insurable self-employment,