Michael Healy-Rae
Question:163. Deputy Michael Healy-Rae asked the Minister for Social Protection the position regarding employers PRSI from January 2014; and if she will make a statement on the matter. [55111/13]
View answerThursday, 19 December 2013
Questions (163)
Written answers
Employer PRSI is payable on earnings at the rate of 10.75% in respect of weekly earnings in excess of €356 and at 8.5% on weekly earnings of €356 or less.
As part of the 2011 Jobs Initiative, the Minister for Finance announced the halving of the 8.5% rate of employer PRSI to 4.25%, as a means of helping job creation and improving labour cost competitiveness, particularly in the tourism and other employment-rich areas of the economy. The measure was implemented in July 2011 on a 2½ year time limited basis to apply from 1 July 2011 until 31 December 2013. The 4.25% employer PRSI rate will revert to the original 8.5% rate from 1 January 2014.
Retaining the 4.25% rate of employer PRSI in 2014 would reduce the expected PRSI yield to the Social Insurance Fund by €195 million in a full year. As the reversion of the employer rate to 8.5% is provided for in legislation, it has already been built into the PRSI income base for 2014 and subsequent years.