From 1 December 2017, self-employed people who have paid sufficient class S PRSI contributions will be entitled to the State Invalidity Pension.
The Invalidity Pension is a weekly payment to people who are permanently incapable of work because of illness or incapacity.
To qualify you must have a minimum number of 5 years paid PRSI contributions, and 48 contributions in one of the last two full years before the date of claiming. The weekly payment of €198.50 is not means tested but is taxable, and other criteria apply. Click here for full details.
This is a very welcome development for the 326,000 self-employed people in Ireland.
However the relatively small payment (amounting to less than an average mortgage repayment) and potential delay in commencement of payments mean that Income Protection insurance will remain a key feature of financial planning for the self-employed.
Ardbrack Financial Ltd
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