Dáil Éireann Debate, Tuesday - 4 December 2012
309. Deputy Simon Harris asked the Minister for Social Protection the incentives are available for employers who hire a young unemployed person, currently receiving Social Welfare benefits; if there is an inclination for employers to use these incentives; and if she will make a statement on the matter. [54114/12]
View answerThere are a two main incentives available to employers to hire unemployed people in receipt of social welfare benefits, namely the Employer Job (PRSI) Incentive Scheme and the Revenue Job Assist Scheme. (used by 794 employers in 2011). In addition, the National Internship Scheme (JobBridge) supports the provision of internship places for unemployed people, with approximately 3,000 participants in 2011).
The Employer Job (PRSI) Incentive Scheme allows an employer who employs an additional member of staff, who had been unemployed for six months or more, to be exempted from paying employers’ PRSI for 18 months. The job must be new and additional, be at least for 30 hours a week and last for at least six months. The scheme was used by over 660 employers in respect of 923 employees in 2011. From January 1st to the 26th October 2012, applications have been received from 820 employers in respect of 1,224 employees and 617 of these applications have been approved in respect of 801 employees. Twelve per cent of employees taken on through this scheme in 2011 were under 25 years of age.
Reduced Employer’s PRSI for Low Paid: From 1 July 2011 the lower rate of employer PRSI was halved (to 4.25%) for all jobs that pay up to €356 per week. Many of those employed under this scheme are likely to be younger.
Revenue Job Assist allows employers a double wages deduction in their accounts, if they employ a person who has been unemployed for 12 months or more. The double wages deduction may last for three years and applies to wages paid to a qualifying employee in a qualifying employment and employer’s PRSI contributions paid in respect of such wages. Job Assist was used by 794 employers in 2011. An employer can avail of both the Revenue Job Assist Scheme and the Employer Job (PRSI) Incentive Scheme.
The National Internship Scheme provides internship opportunities of either 6 or 9 months for unemployed individuals in organisations in the private, public and community voluntary sectors. An Indecon evaluation found that overall some 52% of participants who had finished their internship had found employment at the time of the survey, and that 29% were employed with their host organisation. More than one in four participants on this scheme (27%) in 2011 were under 25 years of age.
In order to encourage employers to take up these various incentives, the Department has recently held a number of ‘Employer Roadshows’ in Sligo, Cork, Limerick, Athlone, Dublin, Galway and Waterford attended by approximately 800 companies. These roadshows advised employers of the range of services available through the Department of Social Protection’s Intreo service, which is a single point of contact for all employment and income supports. It is the intention of the Department to increase the uptake of employer incentives in order to assist in the hiring of unemployed persons.
