Ivan Yates
Ceist:129 Mr. Yates asked the Minister for Social Welfare if he has any proposals to reform the PRSI system and, in particular, to introduce increased PRSI contributions for the civil and public service.
Written Answers. - Reform of PRSI System.
Reform of the PRSI system is something that is kept under continuous review in my Department but major changes to the system can only be considered in the context of budgetary policy generally. Changes which I have introduced in recent years were the extension of social insurance to the self-employed in 1988 and to part-time workers in 1991.
With regard to public sector workers, there have been discussions over recent years with the various interests involved on the question of extending full social insurance cover to public sector workers currently insured at the modified rate of PRSI. No final decisions have been taken in that regard.
Ivan Yates
Ceist:130 Mr. Yates asked the Minister for Social Welfare the cost or the extra revenue that would be yielded from removing the PRSI ceiling and graduating PRSI levels on low incomes.
The abolition of the PRSI ceilings would yield an additional £145 million in a full year. The cost of introducing a system of graduated PRSI rates on low incomes would depend on the exact rates chosen. A restructuring of PRSI rates to give any substantial relief to low earners would, however be very costly.