asked the Minster for Social Welfare the cost or estimated cost in terms of revenue foregone to the social insurance fund due to the operation of income ceilings on PRSI contributions for each year between 1980 and 1987 inclusive.
Written Answers. - PRSI Contributions.
127.
Precise calculations as to the effect of earnings ceilings on PRSI contribution income are not possible. Using available pay distribution data, however, tentative estimates can be made of the revenue forgone to the social insurance fund due to the operation of the ceilings. The estimated amount for each year between 1980 and 1987, inclusive, is as follows:
|
£ millions |
|
|
1980 |
50 |
|
1981 |
56 |
|
1982 |
66 |
|
1983 |
85 |
|
1984 |
58 |
|
1985 |
67 |
|
1986 |
76 |
|
1987 |
78 |
The significant decrease in the income foregone between 1983 and 1984 was due to an exceptional increase in the earnings ceiling (from £9,500 to £13,000) in the 1983-84 contribution year.