Dáil Éireann Debate, Wednesday - 4 December 2013
68. Deputy Robert Troy asked the Minister for Social Protection when the initiative introduced in July 2011 to reduce the PRSI liability for employers hiring employees up to €365 per week will expire; if she has carried out any analysis on the impact this will have on employment; and if she will make a statement on the matter. [52030/13]
Amharc ar fhreagraEmployer PRSI is payable on earnings at the rate of 10.75% in respect of weekly earnings in excess of €356 and at 8.5% on weekly earnings of €356 or less.
As part of the 2011 Jobs Initiative, the Minister for Finance announced the halving of the 8.5% rate of employer PRSI to 4.25%, as a means of helping job creation and improving labour cost competitiveness, particularly in the tourism and other employment-rich areas of the economy. The measure was implemented in July on a 2½ year time limited basis to apply from 1 July 2011 until 31 December 2013. The 4.25% employer PRSI rate will revert to the original 8.5% rate from 1 January 2014.
Retaining the 4.25% rate of employer PRSI in 2014 would reduce the expected PRSI yield to the Social Insurance Fund by €195 million in a full year. As the reversion of the employer rate to 8.5% is provided for in legislation, it has already been built into the PRSI income base for 2014 and subsequent years.
As employment is affected by a number of factors including the current economic environment, it is not possible to carry out an analysis of the impact on employment of this measure in isolation.
