Wednesday, 13 May 2020

Questions (1183)

Peter Burke

Question:

1183. Deputy Peter Burke asked the Minister for Employment Affairs and Social Protection the estimated cost to the Vote of her Department if the rate of employer PRSI was increased to 15.75% for the portion of salaries over €100,000; and if she will make a statement on the matter. [4701/20]

View answer

Written answers (Question to Employment)

Pay Related Social Insurance (PRSI) contributions paid by employees, employers, self-employed people and voluntary contributors is income to the Social Insurance Fund and not to the Vote.

Any increase in the rate of PRSI contribution, including that paid by employers, would increase the annual income to the Social Insurance Fund.

It is estimated that increasing the public and private sector rates of employer PRSI to 15.75% in respect of the portion of earnings of all employments over €100,000 would yield approx. €553 million to the Social Insurance Fund.

This estimate uses the latest available data and reflects the macro-economic indicators available.

The estimate does not take into account any possible changes in employer or employee behaviour arising from changing the rate of employer PRSI contribution. Nor does it take into consideration any of the impacts arising from the measures being taken to deal with the COVID-19 pandemic.

I trust this clarifies the matter for the Deputy.