Written Answers. - Reduction of PRSI and Levies.

Michael Ahern

Question:

525 Mr. M. Ahern asked the Minister for Social Welfare the cost in a full year of a 1 per cent reduction in PRSI and levies. [17018/96]

Michael Ahern

Question:

526 Mr. M. Ahern asked the Minister for Social Welfare the cost in a full year of a 1 per cent reduction in employers PRSI. [17019/96]

It is proposed to take Questions Nos. 525 and 526 together.

The cost of reducing the 8.5 per cent employer PRSI rate to 7.5 per cent is £39 million in a full year. The cost of reducing the 12 per cent employer PRSI rate to 11 per cent is £76 million in a full year. The cost of reducing the 5.5 per cent employee PRSI rate to 4.5 per cent is £76 million in a full year. The cost of reducing the self-employed PRSI rate from 5 per cent to 4 per cent is £18 million in a full year. The total cost, therefore, of a 1 per cent reduction in PRSI is £209 million.

The cost of reducing the health contribution and the employment and training levy from 2.25 per cent in aggregate to 1.25 per cent in aggregate is £170 million in a full year.