Dáil Éireann Debate, Wednesday - 13 January 2021
578. Deputy Catherine Murphy asked the Minister for Social Protection the estimated additional revenue that would be generated if the higher rate of 10.75% PRSI was increased to 13.25% on the portion where persons are earning in excess of €100,000. [1189/21]
View answerThe higher rate of employer social insurance contribution is currently 11.05% of employee earnings and includes a National Training Fund levy of 1%.
I understand that the Deputy’s office clarified that the additional revenue of a 2.5% increase in the higher rate of the employer social insurance contribution on earnings in excess of €100,000 is what is being sought.
Based on the data available in respect of 2019, the estimated additional revenue that could be raised by increasing the higher rate of the employer social insurance contribution by 2.5%, from 11.05% to 13.55%, on earnings in excess of €100,000 would be approximately €183.7 million.
However, this estimate does not take into account any possible changes in employer behaviour arising from increasing the social insurance rate in this manner. 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.
