Dáil Éireann Debate, Thursday - 25 April 2024
219. Deputy Pearse Doherty asked the Minister for Social Protection if she will consider targeted supports to businesses experiencing increased costs through changes, including rebates, under employers PRSI; and if she will make a statement on the matter. [15233/24]
View answerIn general, the issue of targeted supports for businesses is a matter for the Minister for Enterprise, Trade and Employment. However, the following is the position with regards to employer PRSI.
The Actuarial Review of the Social Insurance Fund as at 31 December 2020 found that even without any economic shocks to the economy or change to policy, the long-term sustainability of the Fund will face significant challenges. In the absence of any action to tackle the shortfalls, the excess of expenditure over income of the Fund will increase significantly over the medium to long term with an accumulated deficit of €500 billion by 2076 .
It is in this context that under the PRSI Roadmap agreed by Government there will be modest, incremental increases in all classes of PRSI (employer, employee and self-employed) over the period 2024-2028 commencing with an increase of 0.1 percentage points on 1 October 2024. Also, in respect of Budget 2024, it was decided, on balance, to maintain the employer PRSI threshold at the same level for 2024.
However, in recognition of the pressures faced by businesses due, in particular, to the cumulative impact of measures taken by the Government to improve the working conditions, Government decided that an options paper on the application of the lower (8.8%) rate of employer PRSI would be prepared. The options paper is currently being prepared by my Department, in conjunction with the Departments of Finance, Public Expenditure, National Development Plan Delivery and Reform and Enterprise, Trade and Employment.
I trust this clarifies the matter for the Deputy.
