ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(74)241
Vol.1974/0046

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COMMISSION OFTHEEUROEBAN COMMUNEUES
COM(74)241 final
Brussels ,22February 1974
Supplement tothe proposai for aCouncil Résiliation
amending Regulations (EEC )No1408/71andNo574/72
onthe application ofsocial security schemes to
employed persons and their families moving within
the Community
(submitted totheCouncil bytheCommission )
C0ri (74)241final

Explanatory Memorandum
1.TheIrish social security scheme provides "basic flat–rate benefits which
donotvary with earnings "butwhich areincreased substantially for
dependants .Newlegislation enacted in1973 (Social Welfare (Pay–related
Benefit )Act1973 )provides forascheme ofpay–related benefit .
Thenewpay-related benefit will bepayable asasupplement tounemployment
benefit ,maternity allowance andoccupational injury benefit .Itmaybe
paid after atwo-weeks waiting period forupto2weeks atthemost as
long astheperson concerned continues tobeentitled tothebasic flat–
rate benefit .
Theweekly rate ofthepay-related benefit which will bepayable toa
person will begoverned bythe gross amount ofhis earnings intherelevant
income taxyear from theemployment oremployments inwhich hewasinsured
forallbenefits under the social security legislation .These earnings
coincide with theearnings which areassessable toincome taxunder the
Irish income taxlegislation applicable topaid workers andaretermed
"reckonable earnings "forthepurpose ofthepay-related benefit scheme .
"Therelevant income taxyear "will betheyear ended 5"thApril preceding
thepay–related benefit year (calendar year )inwhich thepayment ofthe
basic flat-rate benefit commences ,butperiods ofunemployment or
incapacity forwork not separated bymore than 13weeks form onecontinuous
period forbenefit purposes known asa"period ofinterruption ofemployment "
andthesame relevant income taxyear will normally apply throughout such
aperiod .
Theweekly rate ofthepay-related benefit will befifrfooftheamount bywhich
theperson 'sreckonable weekly earnings (theaverage weekly amount .ofhis
reckonable earnings )fortherelevant income taxyear exceeds £14butdoes
uotexceed anupper limit orceiling which hasyettobedetermined .The
pay-related contributions tofinance thescheme will becollected bythe
Revenue Commissioners along with income taxunder theincome taxcollection
system andtheinformation astothereckonable earnings intherelevant
income taxyear onwhich theamount ofpay–related benefit payable ineach
case will becalculated will beprovided bytheRevenue Commissioners .The
information will besupplied byway ofafile oncomputer magnetic tape of
thereckonable earnings ofallworkers liable topay-related contributions .

Theearningsto"betakenintoaccountintheIrishpay-relatedbenefit
schemeforunemploymentandincapacityforworkwillthereforerelateto
apastperiodandwillheaveragedoverayear.Articles23andbdofRegulationHo1408/71relating.tothecalculationofearnings-related ,benefitforincapacityforworkandunemploymentweredrawnupinthe_contextofschemesinwhichbenefitsarewhollyear-nings-relatedandm
whichtherateofshort-term "benefitisrelatedtorecentearning.
AccordinglyitissubmittedthattheseprovisionsoftheRegulationarenotsuitabletotheIrishpay-relatedbenefitscheme,asunderthema
newlyarrivednationalfromanotherMemberStatecould,byhavingbenefitrelatedtorecentearningsatcurrentlevelsofpay,eentosubstantially morebywayofpay-relatedbenefitthananIrishoranotherEECnationalwhohasbeeninIrelandfortwoyearsorso^whosbenefitwouldbetiedtoearningsinthepastatthelowerlevelso_p^y
thenapplicable.
Itis,therefore,proposedthatwhereaworkerwhoclaimspay-relatedbenefitundertheIrishpay-relatedbenefitschemewasemployedunder
thelegislationofanotherMemberStateintherelevantincometaxyear,heshouldbecreditedforeachweekofsuchemploymentwithanamount
equivalenttotheaverageweeklyearningsintherelevant^incometaxyearofpersonscoveredbytheIrishpay-relatedbenefitlegislation.Theseaverageweeklyearningswillhecalculatedatthecommencementofeachpay-relatedbenefityearfromtheinformationwhichwillbe^suppliedbytheRevenueCommissioners.Separatefigureswillbecalculated-ormen
andwomen.
ItshouldbenotedthatasimilarprovisionconcerningUnitedKingdom
legislationappearsintheoriginalproposal,underArticle1,
section4«–(5)–
.Thepay-relatedbenefitschemewillcomeintoforceon6ApriltheprovisionofAnnexVofRegulationHo1408/71relatingtotheschemeshouldthereforealsoenterintoforceonthatdate.

Supplementtotheproposal,foraCouncilRegulationamendingRerralaticns
Jh^cJlSo140^7713Jtfo574/72ontheapplicationofsocial'securixyschemes
toemployedpersonsandtheirfamiliesmovingwithintheCommunity(trans­
mittedtothePresidentoftheCouncilon14January1974)•

1,ThefollowingtextshallbeaddedtoArticle1(4)oftheproposal,
relatingtoAnnexV,undersubparagraph (3)c),concerningIreland:
"7»For-thepurposeofcalculating earningsfortheawardofthe
pay-related supplementtosickness,maternityandunemployment
benefitsunderIrishlegislation,aworkershall,inderogation
fromArticle23(l)and6C(l)oftheRegulation,becreditedfor
eachweekofemploymentcompletedunderthelegislation of
anotherMemberStateduringtherelevanttaxyear,withanamount
whichisequivalenttotheaverageweeklyearningsinthatyear
ofmaleorfemaleworkers,asapplicable.tf
2,Thefollowingsubparagraph shallbeinsertedbetweenthefirstandsecond
indentedsubparagraphs ofArticle3:
"–theprovisionsofparagraph7ofAnnexVpointE.Irelandof
Regulation (EEC)NoI408/7Iwhichshalltakeeffecton6April1974|"