State may have to fund maternity leave for self-employed

THE Government could be forced to fund maternity leave for self-employed women and pension entitlements for spouses under new EU rules.

Business representatives welcomed the new European Commission directive yesterday but said ultimately the cost could be met by taxpayers and also the self-employed themselves.

Under the initiative, self-employed workers and their spouses will also enjoy increased social protection.

The Government now has two years to bring the directive into national law, or else face sanctions from Brussels.

Viviane Reding, EU Commissioner for Justice, Fundamental Rights and Citizenship, said: “It will help them to better balance work and family life and encourage more women to become entrepreneurs — which is good for the economy too.”

As of March there were nearly 60,000 self-employed females and 250,000 males in Ireland, says the CSO.

The new rules provide equal access to maternity leave as for employees, but on a voluntary basis.

It is hoped the changes will help promote entrepreneurship among women, where only 30% of entrepreneurs in Europe are women.

EU statistics show 11% of self-employed workers in Europe rely on the help of spouses and partners in small family businesses, such as a farm or a local doctor’s practice. These spouses are dependent on their self-employed partner and are at a high risk of poverty in the event of divorce, their partner’s death or bankruptcy.

The Government is reviewing PRSI contributions and Finance Minister Brian Lenihan is set to make a decision on any changes in December’s budget.

The Irish Small and Medium Business Association gave a cautious welcome to the directive yesterday and questioned how it would be funded.

Social Protection Minister Eamon Ó Cuív’s officials said some self-funding measures were already in place. A spokesperson stated: “Self-employed people are already covered for social insurance pensions and for maternity benefits. A spouse who is a partner in the business can be insured as a self-employed person in their own right, and receive these benefits.”