PART II

SOCIAL INSURANCE

Chapter 1

Insured Persons, Contributions and Benefits

Insured Persons

5. —(1) Subject to this Act—

(a) every person who, being over the age of 16 years and under pensionable age, is employed in any of the employments specified in Part I of the First Schedule , not being an employment specified in Part II of that Schedule, shall, subject to section 65 (1), be an employed contributor for the purposes of this Act, and

(b) every person becoming for the first time an employed contributor shall thereby become insured under this Act and shall thereafter continue throughout his life to be so insured.

[1978 AM, s. 13]

(2) Subject to this Act, where a person ceases to be an employed contributor otherwise than by reason of attaining pensionable age and he 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 an employed contributor, cease to be a voluntary contributor except insofar as is provided in section 11 (2).

(4) Regulations may provide for including among employed contributors person employed in any of the employments specified in Part II of the First Schedule .

(5) Regulations may provide for—

(a) excluding particular employments or any classes of employment from the employments specified in Part I of the First Schedule , or

(b) adding to the employments so specified particular employments or any classes of employment,

and, where the Minister considers that any modifications of this Act are appropriate having regard to the purpose for which the regulations are made, the regulations may make those modifications.

(6) Where regulations are proposed to be made for the purposes of subsection (4) or (5), 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. —Regulations may—

(a) provide for the determination of liability for the payment of employment contributions in the case of a person who works under the general control or management of a person who is not his immediate employer, and

(b) determine the circumstances in which a person is to be regarded for the purposes of section 10 (1) (d) as being concurrently employed by two or more employers.

7. —(1) Regulations may modify the provisions of this Part in their application in the case of—

(a) persons employed in any of the employments specified in paragraphs 2, 3, 4, 5, 6, 7, 11and 12 of Part I of the First Schedule , or

(b) persons employed in a statutory transport undertaking, or

(c) persons employed as teachers in comprehensive schools established by the Minister for Education, or

(d) persons employed as teachers in national schools under the Rules and Regulations for National Schools, or

(e) persons employed as teachers in training colleges recognised by the Minister for Education for teachers in national schools, or

(f) persons employed as teachers in secondary schools recognised by the Minister for Education under the Rules and Programme for Secondary Schools, or

(g) persons employed as teachers in domestic science training colleges recognised by the Minister for Education, or

(h) persons employed as members of the Army Nursing Service, or

(i) persons employed in voluntary hospitals to which grants are paid from the Hospitals Trust Fund in recoupment of revenue deficits, or

(j) persons employed by voluntary organisations which are providing district nursing services.

[1956 AM, s. 3]

(2) Notwithstanding section 9 (1) and section 10 , regulations for the purposes of this section may provide for employment contributions consisting of employers' contributions only and the said sections shall, so long as regulations so providing are in force, stand modified accordingly.

(3) Regulations for the purposes of this section may modify the provisions of this Part in different ways for male persons and for female persons employed in the same employment.

(4) The provisions of this section are without prejudice to the generality of any other provision of this Part providing for regulations.

8. —(1) Regulations may modify the provisions of this Part and the First Schedule in their application in the case of persons who are or have been outside the State while insured under this Part.

(2) The modifications which may be made by regulations for the purposes of subsection (1) shall, in particular, include the deletion of “in the State” in paragraph 1 of Part I of the First Schedule .

(3) The provisions of this section are without prejudice to the generality of any other provision of this Part providing for regulations.

9. —(1) For the purpose of providing moneys for meeting the expenditure on benefit and making any other payments which, under this Act, are to be made out of the Social Insurance Fund, there shall be—

(a) contributions (in this Act referred to as employment contributions) in respect of employed contributors, each of which shall, subject to section 10 (7) and section 65 (2), comprise a contribution by the employed contributor and a contribution (in this Act referred to as the employer's contribution) by the employer of the employed contributor,

(b) contributions in respect of voluntary contributors, and

(c) payments out of moneys provided by the Oireachtas.

[1952, s. 6(3)]

(2) Employment contributions and voluntary contributions shall be paid into the Social Insurance Fund.

10. —(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 (7) and to regulations under section 7 , 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 3.5 per cent., and

(ii) a contribution by his employer at the rate of 8.5 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 £7,000 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.

(d) Where in a particular contribution year an employed contributor is employed by two or more employers concurrently (as defined in regulations under section 6 ), the provisions of paragraph (c) shall, in relation to contributions mentioned in paragraph (b) (ii), apply to the reckonable earnings from each of the employments separately.

[1978 AM, s. 5(5)]

(2) (a) The Minister may by regulations vary the sum specified in subsection (1) (c) and such variation 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) 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.

(3) The employer shall, as respects any employment contribution, be liable in the first instance to pay both the employer's contribution comprised therein and also, on behalf of and to the exclusion of the employed contributor, the contribution comprised therein payable by such contributor.

(4) An employer shall be entitled, subject to and in accordance with regulations, to recover from an employed contributor the amount of any contribution paid or to be paid by him on behalf of that contributor and, notwithstanding anything in any enactment, regulations for the purposes of this subsection may authorise recovery by deductions from the employed contributor's remuneration, but any such regulations shall provide that—

(a) where the employed contributor does not receive any pecuniary remuneration either from the employer or from any other person, the employer shall not be entitled to recover the amount of any such contribution from him, and

(b) where the employed contributor receives any pecuniary remuneration from the employer, the employer shall not be entitled to recover any such contribution otherwise than by deductions.

(5) Notwithstanding any contract to the contrary, an employer shall not be entitled to deduct from the remuneration of a person employed by him, or otherwise to recover from such a person, the employer's contribution in respect of that person.

(6) Any sum deducted by an employer from remuneration under regulations for the purposes of this section shall be deemed to have been entrusted to him for the purpose of paying the contribution in respect of which it was deducted.

[1978 AM, s. 5 (6)]

(7) The employment contribution payable by the employed contributor under subsection (1) (b) or under regulations made under section 7 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 section 50 ,

(f) a social assistance allowance under section 197 ,

(g) a payment corresponding to a pension referred to in paragraph (a) or (e) 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.

11. —(1) (a) Subject to paragraph (c), a contribution (in this Act referred to as 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 (as set out in paragraph (b)) 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 prescribe.

(b) A percentage rate for the purpose of paragraph (a) (i) 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) pensions, 1.8 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, 4.7 per cent., and

(iii) in the case of a person to whom subsection (2) applies and who, by virtue of compliance with that subsection, continues to be a voluntary contributor, 2.9 per cent.

(c) A contribution under paragraph (a) shall not be payable in respect of reckonable income in any contribution year which exceeds the sum specified in section 10 (1) (c).

(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.

[1975, s. 17]

(2) In the case of a person who, on 31st March, 1974, was a voluntary contributor entitled to pay voluntary contributions and who became an employed contributor in respect of whom special rate contributions were payable under section 17 (1) of the Social Welfare Act, 1975 , such a person shall, notwithstanding section 5 (3), continue to be entitled to be a voluntary contributor upon applying to the Minister in writing for such entitlement.

(3) Voluntary contributions paid pursuant to subsection (2) by a person to whom that subsection applies shall be disregarded in determining whether the contribution conditions for any benefit other than old age (contributory) pension, retirement pension or death grant are satisfied.

[1978 AM, s. 8]

(4) Notwithstanding any other provision of this Act, but subject to subsection (5), a voluntary contributor shall not be entitled to disability benefit, unemployment benefit, maternity benefit, invalidity pension or treatment benefit and, if any voluntary contributions paid by him are at the percentage rate for the time being payable under subsection (1) (b) (i), they shall be disregarded in determining whether the contribution conditions for old age (contributory) pension, retirement pension or death grant are satisfied.

[1952, s. 37 (2)]

(5) Notwithstanding subsection (4), any benefit mentioned in that subsection may be granted to a voluntary contributor in such circumstances and subject to such limitations as may be prescribed.

[1978 AM, s. 13(3)]

(6) A voluntary contribution paid under subsection (1) (a) shall be regarded, where the contribution relates to a full contribution year, as having been paid for each contribution week in that contribution year or, where the contribution relates to a shorter period, as having been paid for each contribution week in that period.

12. —Regulations may alter the rates of employment or voluntary contributions but, where such regulations 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.

13. —(1) So far as may be necessary for the proper administration of this Part, information regarding employers and the employment and reckonable earnings of insured persons which is obtained by the Revenue Commissioners in connection with the collection of income tax may be supplied by them to the Minister.

(2) For the purposes of this Part, reckonable earnings may be calculated or estimated, either for a person or a class of persons, in such manner, by reference to such matters and on such basis as may be prescribed.

(3) Regulations may provide for the calculation of the amounts payable in respect of employment contributions and voluntary contributions in accordance with prescribed scales, and for adjustments of such amounts to facilitate computation and to avoid fractions of one penny in the amounts.

14. —Regulations may provide for—

(a) making exceptions from the liability to pay contributions for any specified periods, and

(b) crediting contributions to insured persons for any specified periods, including, in particular—

(i) periods for which there is an exception from the liability to pay contributions by virtue of paragraph (a), and

(ii) the period between the beginning of the contribution year last preceding that in which they become insured persons and their entry into insurance.

15. —(1) Regulations may provide for—

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

(b) the collection and the recovery of, and the furnishing of returns by employers in relation to, employment contributions,

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

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

(e) the furnishing of returns by employers in relation to periods of insurable employment,

(f) the deduction by an employer from the reckonable earnings of an employed contributor of any employment contribution reasonably believed by the employer to be due by the contributor, and adjustment in any case of over-deduction, and

(g) any matter ancillary or incidental to any of the matters referred to in any of the preceding paragraphs of this subsection,

(2) Without prejudice to the generality of subsection (1), regulations under that subsection may provide for—

(a) the assignment of any function relating to any matter referred to in that subsection to the Collector-General,

(b) the assignment to the Collector-General of any function conferred on the Minister by section 116 and the modification for that purpose of any provision of that section,

(c) the inspection by or on behalf of the Revenue Commissioners of records prescribed under subsection (5),

(d) treating, for the purpose of any right to benefit, contributions paid after the due dates as paid on those dates or on such later dates as may be prescribed, or as not having been paid, and

(e) treating as paid, for the purpose of any right to benefit, employment contributions payable by an employer in respect of an insured person which have not been paid, where the failure to pay such contributions is shown not to have been with the consent or connivance of the insured person or attributable to any negligence on the part of the insured person.

(3) Nothing in any regulations under this section shall affect the liability of the employer under section 10 (3) to pay employment contributions.

(4) (a) The provisions of any enactment, regulation or rule of court relating to the inspection of records, the estimation, collection and recovery of, or the furnishing of returns by employers in relation to, income tax, or relating to appeals in relation to income tax, shall, with any necessary modifications, apply in relation to employment contributions which the Collector-General is obliged to collect as they apply in relation to income tax.

(b) In proceedings instituted by virtue of this section, a certificate purporting to be signed by the Collector-General which certifies that a stated amount is due and payable by the defendant shall be evidence until the contrary is proved that that amount is so due and payable, and when tendered in evidence shall be deemed until the contrary is proved to have been signed by him.

(c) For the purposes of this subsection, the rules of the court concerned for the time being applicable to civil proceedings shall apply to proceedings by virtue of this section.

[1978 AM, s. 12]

(5) For the purposes of this Part, regulations may require employers to keep such records as may be prescribed in relation to the earnings of persons employed by them and the periods during which the persons were employed, and to retain the records for prescribed periods.

(6) The powers conferred on an inspector under section 114 may be exercised in relation to records referred to in subsection (5).

16. —(1) Regulations shall provide for the return, subject to any conditions, restrictions and deductions specified in the regulations, of any sums paid in error by way of contributions and of so much of any contribution paid by an employed contributor or a voluntary contributor whose entry into insurance occurred—

(a) after he had attained the age of 60 years;

(b) after he had attained the age of 58 years in the case of a person who attained the age of 57 years on or after 1st July, 1974, and

(c) after he had attained the age of 57 years in the case of a person who attained the age of 56 years on or after 1st April, 1975, and

(d) after he had attained the age of 56 years in the case of a person who attained the age of 55 years on or after 1st October, 1977;

as is determined in accordance with the regulations to have been paid in respect of old age (contributory) pension.

(2) (a) In the case of a person who attained the age of 56 years on or after 1st April, 1975, subsection (1) (b) shall not apply on his attaining the age of 57 years.

(b) In the case of a person who attained the age of 55 years on or after 1st October, 1977, subsection (1) (c) shall not apply on his attaining the age of 56 years and subsection (1) (b) shall not apply on his attaining the age of 57 years.

[1962 MP, s. 10]

(3) For the purposes of this section, the entry into insurance of a contributor, whether an employed contributor or a voluntary contributor, shall be deemed to have occurred after he had attained the appropriate age under subsection (1) if after the time of such attainment he became for the first time an employed contributor in respect of whom contributions reckonable for the purposes of the contribution conditions for an old age (contributory) pension are payable and he had not been an employed contributor under the National Health Insurance Acts, 1911 to 1952, before attaining that age.

[1970, s. 19]

(4) Regulations shall provide for the return, subject to any conditions, restrictions and deductions specified in the regulations, of so much of any contribution paid by an employed contributor or a voluntary contributor who entered into insurance for the purposes of section 84 (1) after he had attained the age of 55 years as is determined in accordance with the regulations to have been paid in respect of retirement pension.

17. —(1) Benefits under this Part shall be of the following descriptions and are so described in this Act—

(a) disability benefit,

(b) maternity allowance,

(c) unemployment benefit,

(d) occupational injuries benefit, which shall comprise injury benefit, disablement benefit and death benefit,

(e) pay-related benefit,

(f) old age (contributory) pension (including benefit under section 87 ),

(g) retirement pension (including benefit under section 87 ),

(h) invalidity pension,

(i) widow's (contributory) pension,

(j) orphan's (contributory) allowance,

(k) deserted wife's benefit,

(l) maternity grant,

(m) death grant.

(2) Subject to section 110 and so long as that section remains in force, benefit shall, in addition to including the benefits referred to in subsection (1), also include treatment benefit under that section.

(3) Benefit shall, subject to section 67 (2) (a), be paid or provided for out of the Social Insurance Fund.