Dáil Éireann Debate, Wednesday - 15 January 2014
339. Deputy Brendan Griffin asked the Minister for Social Protection if she will extend the employer PRSI relief of 4.25% given to businesses over the past two and half years in view of the positive affect it has had on employment and the potential financial pressures it will have on small businesses; and if she will make a statement on the matter. [1526/14]
View answerEmployer 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 on a 2½ year time limited basis to apply from 1 July 2011 until 31 December 2013. The 4.25% employer PRSI rate reverted 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.
