Dáil Éireann díospóireacht -
Thursday, 21 Nov 2002

Vol. 557 No. 6

Written Answers. - Pension Provisions.

Richard Bruton

Ceist:

227 Mr. R. Bruton asked the Minister for Social and Family Affairs the thresholds, the exemptions and the ceilings which currently apply in respect of social insurance contributions; and the changes incorporated in the Estimates for 2003. [23143/02]

Minister for Social and Family Affairs (Mary Coughlan)

The lower earnings threshold for social insurance contributions is €38 per week. Employees covered under classes A, B, C, D, E and H with reckonable earnings between €38 and €287 in any given week, are exempt from paying social insurance for that week.

The employer portion of the class A contribution is payable at the lower rate of 7.8% on employee's weekly earnings up to a threshold of €356. The higher rate of 10.05% applies to all employee's earnings in any week where the earnings exceed €356.

Self-employed people with an annual income greater than €3,174 are liable to pay PRSI at 3% of all income, or €253 per annum, whichever is the greater. The employee's portion of the social insurance contribution applies to reckonable cumulative annual earnings up to a ceiling of €38,740 with effect from 1 January 2002. An upper limit does not apply in respect of the employer or self-employed social insurance contribution.

The weekly non-cumulative PRSI-free allowance of €127 applies to the employee's social insurance contributions in classes A, E and H in any week that reckonable earnings exceed €287. For those in classes B, C and D with reckonable weekly earnings above the €287 threshold, a PRSI-free allowance of €26 applies.

The calculations of receipts of the social insurance fund in 2003 are based on pre-budget macroeconomic projections provided by the Department of Finance and I understand that the Minister for Finance will be making these available at the time of the budget.