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4 1994

SOCIAL WELFARE ACT, 1994

PART III

Social Insurance Contributions

Employment contributions (new rates of contributions and increases in earnings ceilings).

7. —(1) Section 10 of the Principal Act is hereby amended by the substitution for subsection (1) of the following subsection:

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

(b) Subject to paragraph (c) and to regulations under section 11, 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 a contribution by the employed contributor at the rate of 5.5 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 £20,900 and the contributions payable 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 by the employed contributor in that contribution year.

(d) Subject to paragraphs (e) and (f) and to regulations under section 11, where in any contribution week 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 a contribution by the employed contributor's employer—

(i) at the rate of 9 per cent. of the amount of the reckonable earnings in that week to which such payment relates where those reckonable earnings do not exceed £173, (or the equivalent thereof in the case of an employed contributor remunerated otherwise than on a weekly basis), and

(ii) at the rate of 12.2 per cent. of the amount of the reckonable earnings in that week to which such payment relates where those reckonable earnings exceed £173, (or the equivalent thereof in the case of an employed contributor remunerated otherwise than on a weekly basis).

(e) Where in a particular contribution year an employed contributor's reckonable earnings have amounted to the sum of £25,800 and the contributions payable under paragraph (d) 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 by his employer in that contribution year.

(f) Where in a particular contribution year an employed contributor is employed by two or more employers concurrently (as defined in regulations under section 13), the provisions of paragraph (e) shall, in relation to contributions mentioned in paragraph (d), apply to the reckonable earnings from each of the employments separately.”.

(2) Each provision of the Principal Act mentioned in column (1) of Schedule C to this Act is hereby amended in the manner specified in column (2) of that Schedule opposite the mention of that provision in column (1).

(3) This section shall come into operation on the 6th day of April, 1994.

Self-employment contributions (increase in earnings ceiling).

8. —(1) Section 18 (1) of the Principal Act is hereby amended by the substitution in paragraph (d) of “£20,900” for “£20,000”.

(2) This section shall come into operation on the 6th day of April, 1994.

Voluntary contributions by former self-employed contributors.

9. —(1) Section 23 of the Principal Act is hereby amended by the substitution in subsection (1) of “£250” for “£234”.

(2) This section shall come into operation on the 6th day of April, 1994.

Exemption from payment of contributions.

10. —Section 10 of the Principal Act is hereby amended by the insertion after subsection (8) of the following subsection:

“(9) An employer who, during the period commencing on the 6th day of April, 1994, and ending on the 5th day of April, 1995, employs additional employees under and by virtue of the scheme administered by the Department of Social Welfare known as the Employers' Pay-Related Social Insurance Exemption Scheme, shall not, during the period commencing on the 6th day of April, 1994, and ending on the 5th day of April, 1996, be liable to pay the contribution specified in section 10 (1) (d) in respect of additional employees who constitute a net increase in the employer's workforce under the scheme above that applying on the 21st day of February, 1994.”.