Sport Ireland, which is funded by the Department of Culture, Communications and Sport, is the statutory body with responsibility for the development of sport, increasing participation at all levels and raising standards. Sport Ireland has responsibility for High Performance and the administration of the International Carding Scheme. The scheme provides financial supports to elite sportspeople for training and competition purposes.
I propose to take Questions Nos. 174, 175, 176, 177, 178, 179 and 181 together.
With limited exceptions, social welfare legislation provides that employed or self-employed persons over the age of 16 and under the age of 66, and those born after 1 January 1958 and aged between 66 and 70 and not in receipt of the State Pension (Contributory), are liable to pay PRSI on their income.
Sport Ireland deems that elite athletes receiving payments under the International Carding Scheme are not employees and, accordingly, they are not subject to income tax and PRSI returns under the Revenue PAYE system. Generally, these payments would be deemed to be self-employed income and along with any other income the athlete receives, would need to be self-declared for the purposes of charging income tax and PRSI under Revenue’s self-assessed system. The applicable PRSI class for such self-assessed income would be class S. The rate applicable to this class is 4.2% or a minimum payment of €650 subject to meeting an annual income threshold of €5,000.
Contributions made under PRSI class S entitle a person to most of the benefits available under the Social Insurance Fund. Such benefits include Jobseeker’s Benefit (Self-Employed), Parent’s Benefit, Carer’s Benefit and the State Pension (Contributory). In recent years there has been a significant expansion of benefits to class S contributors without any increase in their PRSI rate. Furthermore, the Programme for Government includes an action to explore the option of giving self-employed workers access to Illness Benefit by means of making a higher PRSI contribution. My Department has commenced work in this regard and this proposal will be progressed over the lifetime of the Government.
Class S contributors are not entitled to credited contributions; as such, contributors pay a single annual PRSI contribution which entitles them to the full 52 contributions for a year, regardless of when and how long they worked in that year to generate their income.
There has been no review, analysis or interdepartmental discussion of the social protection position of elite athletes involving my Department in the period cited by the Deputy (2015-date) and there are no current plans to do so.
Any queries relating to the policy and administration aspects of the International Carding Scheme should be addressed to the Minister for Culture, Communications and Sport. If there is a particular case of concern regarding PRSI status, it should be brought to my department's attention.
I trust this clarifies the matters for the Deputy.