Since 2000, a total of 2,590 PRSI exemption certificates has been granted in respect of the temporary employment of persons not ordinarily resident in this country. Of these 1,504 certificates were granted to the company in question. An annual breakdown of these certificates is set out in the following table.
The legislation provides for an exemption from PRSI contributions for up to 52 weeks to be granted to employees not ordinarily resident in the State but who are temporarily employed here. The purpose of the legislation is to avoid a situation whereby workers, who are sent by their employer to work here for short periods, would be subject to social insurance in two countries at the same time. Similar arrangements apply under EU Regulation 1408/71 to workers moving within the EU/EEA and to workers covered by bilateral social security agreements with this country.
When a request for an exemption certificate is being processed, a signed declaration is obtained from each employer confirming that the person for whom the exemption certificate is being sought continues to be covered by the social insurance regime of their home country while working in Ireland.
My Department seeks independent confirmation in respect of a random number of selected cases from the authorities in the employee's home country that social insurance payments have actually been made during the period covered by the exemption certificate. This control complements the employer's declaration regarding the employee's insurance status.
In the case of the company in question, a random sample of exempted cases has been referred to the relevant overseas authorities, via the Department of Foreign Affairs. Confirmation has been received that the employees involved remained attached to their home country's social security regime during the period of the exemption.
The needs of the Irish economy have changed significantly since the PRSI exemption legislation was introduced in 1961. There have been changes in working patterns and skill levels and the enlargement of the European Union has also affected the labour market.
Against this background, and having regard to the circumstances of the case in question, my Department is undertaking a review of the policy, the legislative provisions and the administrative arrangements for the PRSI exemption scheme. I will consider what changes, if any, need to be made in the light of that report.
Exemption Certificates Issued
|
Year
|
Number of exemptions issued
|
Number issued to specified company
|
|
2000
|
83
|
0
|
|
2001
|
105
|
0
|
|
2002
|
290
|
92
|
|
2003
|
1,048
|
784
|
|
2004
|
603
|
347
|
|
2005
|
390
|
281
|
|
2006 (30/04/2006)
|
71
|
0
|
|
Total
|
2,590
|
1,504
|
