Joint circular - work sharing and social insurance
by Niall Shanahan
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IMPACT and other unions have issued a joint circular in relation to an issue that has arisen concerning work sharers and their social insurance contributions.
The rules governing PRSI contributions require a person for whom a contribution is made to work for at least one day in a PRSI contribution week. If a person does not work in a contribution week, then no PRSI contribution may be made in respect of that week.
Under existing legislation, a contribution week for PRSI purposes commences at the start of the tax year on whatever day the 1st January falls (In 2016, for example, January 1st falls on a Friday). As a consequence, each PRSI contribution week will run from Friday to Thursday for 2016.
To qualify for a PRSI contribution a person must work at least one day in a PRSI contribution week. This means that any work sharers who work week on/week off on the basis of a Friday to Thursday work pattern will only be awarded 26 contributions for 2016 (instead of a possible 52).
Unions are advising members who work this or any other similar attendance pattern, that they would put at risk their Social Welfare entitlements in 2016 unless they change to a pattern which would qualify for 52 contributions.
A copy of the circular, jointly issued by IMPACT, the AHCPS, CPSU, PSEU and VOA is available here.
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