Taxation of social welfare payments - Illness Benefit
The three main types of social welfare payment made by the Department of Employment Affairs and Social Protection (DEASP) are:
- Contributory payments, for example, Illness Benefit (IB). This is based on your Pay Related Social Insurance (PRSI) contributions.
- Non-contributory payments, for example, Jobseeker's Allowance. This is based on a means test.
- Universal payments, for example, Child Benefit. This is not based on PRSI contributions or means tested.
This section will explain how IB, Occupational Injury Benefit and Partial Capacity Benefit, all contributory payments, are taxed. For ease of reference, the terms IB is used to cover all three payments.
Next: Taxing IB, Occupational Injury Benefit and Partial Capacity Benefit