Dáil Éireann Debate, Wednesday - 13 February 2013
125. Deputy James Bannon asked the Minister for Social Protection the position regarding a reduction in a PRSI contribution in respect of a person (details supplied) in County Longford; and if she will make a statement on the matter. [7677/13]
View answerIncome received by participants of certain FAS courses including Community Employment is treated, for the purposes of charging PRSI, in the same manner as earnings from employment. This means that participants of such FAS courses can gain entitlement to social insurance benefits, including short-term benefits such as Jobseekers and Illness Benefit, in the same way as private sector employees.
As part of Budget 2013, the €127 PRSI-free allowance which applies to employees paying PRSI Classes A, E and H, was abolished. For those earning in excess of €352 per week and paying PRSI at 4%, this increases the amount of PRSI payable by €5.08 per week. This also affects participants of certain FAS courses whose income is treated as earnings for PRSI purposes, in the same manner as it impacts the earnings of employees.
There is no provision for reduction of the PRSI liability on earnings, or income which is treated in an analogous way, on hardship grounds.
