It is of interest to note that while the total Social Security contributions paid by a Self-employed person is 13% of his income, the minimum Pension for which he may qualify is 30% of his AWIE. Additionally, the Short-term Benefits he may qualify for are paid at the rate of 60% of his AWIE.
Self-employed persons currently qualify for Short-Term and Long-Term benefits.
Short-Term Benefits: These are benefits that are generally payable for a short duration of time (not exceeding 26 weeks or 6 months), and are meant to partially replace employment income lost as a result of temporary absence from work. A qualifying claimant is paid a maximum of 60% of his average income during the period of time that he is medically certified to be incapable of work. A person in receipt of Short-term benefit is responsible for informing the DSS office if there is any change of circumstances affecting his continued rights to such benefit. Short-Term Benefits being paid by DSS are as follows:
- Sickness Benefit
- Maternity Benefit
- Maternity Grant
Long-Term Benefits: are generally payable for a longer duration of time than Short-term Benefits which are paid for a maximum period of 26 weeks. The benefit payable is a function of the number of Contributions (or Credits) which a person has recorded against his account, and his average income for the best 3 of the last 10 working years. Having determined the Claimant’s Average earnings, the Claimant is paid a percentage of such Average Earnings. The percentage payable depends on the number of Credits that the person has earned during his insurable years. (Please see the Pension Percentage Computation Chart for the percentage equivalency.)
The Long-term benefits being paid by DSS are as follows:
- Age Pension
- Age Grant
- Invalidity Pension
- Invalidity Grant
- Survivors Pension
- Survivors Grant
In addition, a lump sum Funeral Grant is provided to assist with the burial expenses of an Insured Person, his or her spouse, and/or their dependent children. The Grant is payable to the person(s) who has met, or is liable to meet, the burial expenses.