PART III

Social Insurance Contributions

Employment contributions (new rates of contributions and increase in earnings ceiling).

6. —(1) Section 10 (1) (inserted by section 7 of the Act of 1994) of the Principal Act is hereby amended by—

(a) the substitution for paragraph (b) of the following paragraph:

“(b) Subject to paragraph (c) and to regulations under section 11, where in any contribution week 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 a contribution by the employed contributor at the rate of 5.5 per cent, of the amount of reckonable earnings in excess of £50 in that week in respect of each employment (or the equivalent thereof in the case of an employed contributor remunerated otherwise than on a weekly basis) to which such payment relates.”,

(b) the substitution in paragraph (c) of “£21,500” for “£20,900”, and

(c) the substitution in paragraph (d) of “£231” for “£173” in both places where it occurs.

(2) This section shall come into operation on the 6th day of April, 1995.

Self-employment contributions (new rates of contributions and increase in earnings ceiling).

7. —(1) Section 18 (1) of the Principal Act is hereby amended by—

(a) the substitution in paragraph (a) of “of an amount equal to 5 per cent, of the reckonable income in excess of £520 or the amount of £230, whichever is the greater” for “of an amount equal to 5 per cent, of the reckonable income or the amount of £250, whichever is the greater”,

(b) the substitution in paragraph (c) of “of an amount equal to 5 per cent, of reckonable emoluments in excess of £520 or the amount of £230, whichever is the greater” for “of an amount equal to 5 per cent, of reckonable emoluments or the amount of £250, whichever is the greater”,

(c) the substitution in paragraph (d) of “£21,500” for “£20,900” (inserted by section 8 of the Act of 1994), and

(d) the substitution in paragraph (h) of “£230” for “£250” in both places where it occurs.

(2) This section shall come into operation on the 6th day of April, 1995.

Optional contributions (new rates of contributions).

8. —(1) Section 24B (1) (inserted by section 4 of the Social Welfare (No. 2) Act, 1993 ) is hereby amended by the insertion in paragraph (a) after “reckonable income” of “in excess of £520”.

(2) This section shall come into operation on the 6th day of April, 1995.

Voluntary contributions by former self-employed contributors.

9. —(1) Section 23 of the Principal Act is hereby amended by the substitution in subsection (1) of “£230” for “£250” (inserted by section 9 of the Act of 1994).

(2) This section shall come into operation on the 6th day of April, 1995.

Exemption from payment of contributions.

10. —Section 10 of the Principal Act is hereby amended by the insertion after subsection (9) (inserted by section 10 of the Act of 1994) of the following subsection:

“(10) Regulations may, subject to such conditions and in such circumstances as may be prescribed, exempt an employer who employs an employee under and by virtue of a scheme administered by the Department of Social Welfare known as the Employers' Pay-Related Social Insurance Exemption Scheme, from the liability to pay the contribution specified in section 10 (1) (d) in respect of any such employee.”.