Dáil Éireann Debate, Tuesday - 12 March 2019
629. Deputy Pearse Doherty asked the Minister for Employment Affairs and Social Protection the estimated cost of increasing the level at which the higher rate of employer PRSI commences at to €452.20 a week; and if she will make a statement on the matter. [12156/19]
View answerThe National Training Fund Levy (NTFL), collected alongside Employer PRSI for Classes A and H, increased by 0.1% from 0.8% to 0.9% from 1 January 2019. This means that Employer rates (combined PRSI and NTFL) for Classes A and H increased by 0.1% from 1 January 2019.
Currently, Class A employers pay PRSI at the rate of 8.7% where weekly earnings are between €38 and €386. Once weekly earnings exceed €386, the rate of employer PRSI is 10.95%.
The estimated cost to the Social Insurance Fund of raising the weekly 8.7% threshold to €425.20 and the estimated number of employments impacted by such a change are set out in the following table -
Thresholds:
|
Higher rate threshold |
€425.20 |
|
Cost |
€21.7 million |
|
Employments affected |
86,002 |
These estimates are based on the latest available data and reflect macro-economic indicators for 2019. It should be noted that the estimates do not take possible changes in employer behaviour arising from changing rate thresholds into account.
I hope this clarifies the matter for the Deputy.
