Vol. 463 No. 7
48 Miss Harney asked the Minister for Social Welfare the estimated increase in employers' PRSI consequent on the increase in the employers' PRSI ceiling accepted in the 1996 budget; and if he will make a statement on the matter. [7229/96]
The earnings ceiling for employers' PRSI will be raised from £25,800 per year to £26,800 per year with effect from 6 April 1996. This will bring in revenue of £8.9 million per annum to the social insurance fund. The objective is to maintain the value of the ceiling at the existing level in real terms. The increase amounts to 3.9 per cent which is in line with movements in earnings since the ceiling was last adjusted in April 1995.
There will be a substantial reduction in employers' PRSI as a result of the overall budget package:
—the standard rate of employers' PRSI is being reduced from 12.2 per cent to 12 per cent
—the lower rate of employers' PRSI is being reduced from 9 per cent to 8.5 per cent
