Tuesday, 23 July 2019

Questions (2651, 2652)

Richard Boyd Barrett

Question:

2651. Deputy Richard Boyd Barrett asked the Minister for Employment Affairs and Social Protection the estimated amount that would be raised by increasing the employer rate of PRSI by 2%. [34036/19]

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Richard Boyd Barrett

Question:

2652. Deputy Richard Boyd Barrett asked the Minister for Employment Affairs and Social Protection the estimated additional revenue that could be generated by establishing a new band of employer PRSI of 19.75% on incomes over €90,000 per year and to increase the existing 10.955% by 2% to 12.95%. [34565/19]

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Written answers (Question to Employment)

I propose to take Questions Nos. 2651 and 2652 together.

The yields from increasing the lower and higher Employer PRSI rates by 2% and increasing the higher employer PRSI rate by 2% and introducing a new 19.75% band of Employer PRSI Rate on incomes over €90,000 per year are shown in the table.

Rate

Full Year Yield

Employments Affected

Increase Employer Lower Rate by 2%

€86.2m

0.8m

Increase Employer Higher Rate by 2%

€1,497.1m

2.2m

New Band of 19.75% for earnings over €90,000 per year

€713.1m

0.4m

Increase the higher employer PRSI rate by 2% and introducing a new 19.75% band of Employer PRSI Rate on incomes over €90,000 per year

€2,048.3m

2.2m

These estimates are based on PRSI Class A contributions. They use the latest available data and reflect macro-economic indicators for 2020.

It should be noted that these estimates do not take into account any possible changes in employer behaviour arising from changing rates of contribution.

I trust this clarifies the matter for the Deputy.