Dáil Éireann Debate, Thursday - 25 April 2024
38. Deputy Paul Murphy asked the Minister for Social Protection if she is concerned at the impact proposed cuts to employers’ PRSI will have on the Social Insurance Fund; and if she will make a statement on the matter. [18331/24]
View answerThe Actuarial Review of the Social Insurance Fund as at 31 December 2020 found that even without any economic shocks to the economy or change to policy, the long-term sustainability of the Fund will face significant challenges. In the absence of any action to tackle the shortfalls, the excess of expenditure over income of the Fund will increase significantly over the medium to long term with an accumulated deficit of €500 billion by 2076.It is in this context that under the PRSI Roadmap agreed by Government there will be modest, incremental increases in all classes of PRSI (employer, employee and self-employed) over the period 2024-2028 commencing with an increase of 0.1 percentage points on 1 October 2024. Also, in respect of Budget 2024, it was decided, on balance, to maintain the employer PRSI threshold at the same level for 2024. In recognition of the pressures faced by businesses due, in particular, to the cumulative impact of measures taken by the Government to improve the working conditions, Government decided in March 2024 that an options paper on the application of the lower (8.8%) rate of employer PRSI would be prepared. The options paper is currently being prepared by my Department in conjunction with the Departments of Finance, Public Expenditure, National Development Plan Delivery and Reform and Enterprise, Trade and Employment and, once finalised, will be considered by Government. I trust this clarifies the matter for the Deputy.
