Dáil Éireann díospóireacht -
Thursday, 9 Nov 2000

Vol. 525 No. 4

Written Answers. - Social Insurance.

Jim Mitchell

Ceist:

110 Mr. J. Mitchell asked the Minister for Social, Community and Family Affairs if he will set out, by way of tabular statement, the present rate of PRSI charged to employers and employees; the total revenue expected in 2000 under both headings; the minimum level under which PRSI is not charged to both employers and employees; the maximum income over which it is not charged; the yield which would arise if the upper limit for employers was raised by £1,000, £5,000, £10,000 or completely; and the yield available if the upper limit for employees was raised by £1,000, £5,000, £10,000. [25378/00]

Jim Mitchell

Ceist:

111 Mr. J. Mitchell asked the Minister for Social, Community and Family Affairs the estimated total yield in 2000 from employers' PRSI, employees' PRSI and health levies; and the annual change in yield which would arise if PRSI levels were increased or decreased for employers or employees by every 1%. [25380/00]

Minister for Social, Community and Family Affairs (Mr. D. Ahern):

It is proposed to take Questions Nos. 110 and 111 together.

The information requested by the Deputy is contained in the following tables.

Table 1: Employer and Employee PRSI Rates, 2000/01 (PRSI Classes A and J).

PRSI Contribution Rates from 6 April 2000

(including the Health Contribution)*

Private and Some Public Sector Employments

Weekly Income Limits	PRSI Class	How much of weekly Income	Cumulative reckonable earnings	Not greater than £26,500				From £26,500.01 to £36,600
			EE	ER	Total	EE	ER	Total
			%	%	%	%	%	%
	JO†	All	Nil	0.50	0.50	Nil	0.50	0.50
£30-£226	A0	All	Nil	8.50	8.50	Nil	8.50	8.50
>£226-£280	AX	First £100	Nil	8.50	8.50	Nil	8.50	8.50
		^gt;£100	4.50	8.50	13.00	Nil	8.50	8.50
>£280	A1	First £100	2.00	12.00	14.00	2.00	12.00	14.00
		>£100	6.50	12.00	18.50	2.00	12.00	14.00
	A2	First £100	Nil	12.00	12.00	Nil	12.00	12.00
		>£100	4.50	12.00	16.50	Nil	12.00	12.00

*An employer PRSI contribution is due at the appropriate rate at all weekly income levels up to an annual earnings ceiling of £36,600. An employee PRSI contribution is due at the appropriate rate at all weekly income levels up to an annual earnings ceiling of £26,500. Employees earning less than £226 per week are exempt for making a contribution. The annual earnings ceiling does not apply to the Health Contribution (2%).

†Class J normally relates to people with reckonable earnings of less than £30 per week (from all employments). However, the following employees are insurable at Class J irrespective of earnings: employees over age 66, people in subsidiary employment and participants in some FÁS Training Schemes.

Table 2: Employer and Employee PRSI Rates, 2000/01 (PRSI Classes B, C, D and H).

PRSI Contribution Rates from 6 April 2000

Some Public Sector Employment*

Weekly Income Limits	PRSI Class	How much of weekly Income	Cumulative reckonable earnings	Not greater than £26,500				From £26,500.01 to £36,600
			EE	ER	Total	EE	ER	Total
			%	%	%	%	%	%
	BO		NIL	2.01	2.01	NIL	2.01	2.01
		>£20	0.90	2.01	2.91	NIL	2.01	2.01
>£280	B1		2.00	2.01	4.01	2.00	2.01	4.01
		>£20	2.90	2.01	4.91	2.00	2.01	4.01
	B2		NIL	2.01	2.01	NIL	2.01	2.01
		>£20	0.90	2.01	2.91	NIL	2.01	2.01
	CO		NIL	1.85	1.85	NIL	1.85	1.85
		>£20	0.90	1.85	2.75	NIL	1.85	1.85
>£280	C1		2.00	1.85	3.85	2.00	1.85	3.85
		>£20	2.90	1.85	4.75	2.00	1.85	3.85
	C2		NIL	1.85	1.85	NIL	1.85	1.85
		>£20	0.90	1.85	2.75	NIL	1.85	1.85
	DO		NIL	2.35	2.35	NIL	2.35	2.35
		>£20	0.90	2.35	3.25	NIL	2.35	2.35
>£280	D1		2.00	2.35	4.35	2.00	2.35	4.35
		>£20	2.90	2.35	5.25	2.00	2.35	4.35
	D2		NIL	2.35	2.35	NIL	2.35	2.35
		>£20	0.90	2.35	3.25	NIL	2.35	2.35
	HO	ALL	NIL	11.3	11.30	NIL	11.3	11.30
>£226-£280	HX		NIL	11.3	11.30	NIL	11.3	11.30
		>£100	4.40	11.3	15.70	NIL	11.3	11.30
>£280	H1		2.00	11.3	13.30	2.00	11.3	13.30
		>£100	6.40	11.3	17.70	2.00	11.3	13.30
	H2		NIL	11.3	11.30	NIL	11.3	11.30
		>£100	4.40	11.3	15.70	NIL	11.3	11.30

*Classes B,C and D apply to civil/public servants and commissioned Army officers recruited prior to April 1995. Class H applies to enlisted personnel in the Defence Forces.

Table 3: Projected Employer PRSI, Employee PRSI and Health Contribution yield in 2000.

	£ million
Employee PRSI	602
Employer PRSI	2,118
Health Contribution	489

Table 4: Estimated yield from increasing PRSI annual earnings ceilings (All Classes) by

	+£1,000	+£5,000	+£10,000	Abolition
Employee PRSI	£8m	£34m	£56m	£122m
Employer PRSI	£8m	£34m	£58m	£159m

Table 5: Estimated yield for each 1% increase in Employer and Employee PRSI Rates (Class A).

Employee PRSI	£125m
Employer PRSI	£53m