Dáil Éireann Debate, Tuesday - 7 November 2023
712. Deputy Neasa Hourigan asked the Minister for Social Protection the consideration being given to the recommendations of the Tax Strategy Group's paper in relation to pay related social insurance, in particular their proposal to eliminate the lower employer social insurance rate; and if she will make a statement on the matter. [47443/23]
View answerThe Tax Strategy Group (TSG) is chaired by the Department of Finance and comprises of senior officials from a number of Government Departments. It is not a decision making body and the papers produced by Departments are simply a list of options and issues to be considered in the Budgetary process. My Department's 2024 Paper on Pay Related Social Insurance examined, in the main, options to address the "step effect" impact on employee and employer PRSI.
In Budget 2024 the Government decided to increase all PRSI rates (employer and employee) by 0.1% from 1 October 2024 to address the long term sustainability of the Social Insurance Fund. The matter of addressing the employer "step effect" will be kept under consideration.
I trust this clarifies the matter for the Deputy.
