Contractors Entitled to Jobseekers’ Benefit from November

Contractors will be entitled to claim social welfare payments up to €203 per week from November as part of a move by the Department of Social Protection to bring the entitlements of the self-employed in line with those of the employed.

Minister for Employment Affairs and Social Protection Regina Doherty explained that the change is aimed at creating a support structure for the self-employed. “This new benefit supports the Government’s aim of creating a supportive environment for entrepreneurship, including providing an income safety net to employees and self-employed alike.”

“The introduction of a new Jobseekers’ Benefit scheme for the self-employed represents the next step in the Government’s work to extend PRSI benefits and will provide an income safety net to thousands of small and medium businesses throughout the country,” Doherty explained.

Once the legislation comes into effect it will see Contractor workers’ entitlements fall in sync with their full-time counterparts for the first time. 

Contractors will also be able to claim for dependants, with payments for children under 12 (€37 per week), children over 12 (€34 per week) potentially accessible. A qualifying adult may also be claimed for at a rate of €134.70.

In addition to benefiting from the standard Jobseekers’ Benefit payment Contractors will also have access to the full network of social welfare initiatives, many of which only became available in recent years. Some medical benefits such as dental, hearing and eye care; and pensions such as the state and invalidity pension will now be fully accessible. Maternity and paternity leave – statutory under state law – will also be available to Contractors who need to claim.

Independent Alliance TD and Minister for State Kevin ‘Boxer’ Moran said that the two-tier PRSI system was unfair to the self-employed and needed to change. “The current two-tier system of PRSI contributions whereby the self-employed were getting less benefits had to change,” he explained. “I have long supported the idea that the self-employed were badly affected during the recession where they were left high and dry by the lack of support from the social welfare system.”

It is estimated that up to 6,500 individuals could benefit from the new support at any given time.

As is the case with those formerly employed by companies, self-employed claimants will need to build up PRSI contributions to be eligible to draw payment. To access Jobseekers’ Benefit for nine months, Contractors will need to have built up 260 PRSI contributions – the same amount as the formerly employed – to receive Jobseekers’ Benefit for the full nine months. Persons with less than 260 contributions will be eligible to be paid for six months.

If you would like to speak with one of our team about setting up as a Contractor feel free to contact us at (01) 8077106 between 9am and 5:30pm Monday to Friday.