Vol. 448 No. 1
87 Mr. McCreevy asked the Minister for Social Welfare the cost to the Exchequer of increasing the earnings ceiling for the reduced rate of PRSI to an annual gross income of £10,000, £11,000 and £12,000; and if he will make a statement on the matter. [1589/95]
The Class A employers' PRSI contribution structure, introduced in last year's budget, operates on a two tier basis. A lower contribution rate of 9 per cent applies to employers in cases where their employees' total earnings are less than £173 in any week. A higher contribution rate of 12.2 per cent applies in all other cases up to a contribution ceiling of £25,800.
The estimated costs of increasing this lower rate threshold to the levels specified by the Deputy are as follows:
|
Threshold |
Cost |
|
£10,000(£192 weekly) |
£13m |
|
£11,000 (£212 weekly) |
£29m |
|
£12,000 (£231 weekly) |
£46m |
