Vol. 405 No. 9
32 Mr. Ferris asked the Minister for Social Welfare the estimated reduction in the standard 5.8 per cent employee PRSI contribution rate which application of the revenue savings from the abolition of (1) the PRSI allowance and (2) the income ceiling on employee contributions could finance on a revenue neutral basis to the Exchequer; and if he will make a statement on the matter.
The abolition of the PRSI tax allowance would fund a reduction of 1 per cent — from 5.5 per cent to 4.5 per cent — in the standard employee PRSI rate. The abolition of the income ceiling for employee contributions would fund a reduction of 0.5 per cent.
Either measure would affect take home pay across the whole range of income levels. Any such change would, therefore, need to be considered in the context of overall budgetary policy and, in particular, in the light of future developments in the tax and PRSI systems.
