Richard Boyd Barrett
Ceist:1471. Deputy Richard Boyd Barrett asked the Minister for Social Protection the amount that would be collected if both current bands of employers' PRSI were increased by 2%. [36309/17]
Amharc ar fhreagraWednesday, 26 July 2017
Ceisteanna (1471, 1472)
Richard Boyd Barrett
Ceist:1472. Deputy Richard Boyd Barrett asked the Minister for Social Protection the amount that would be collected if a new PRSI rate of 19.75% was introduced for employers hiring staff who earn more than €100,000. [36310/17]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 1471 and 1472 together.
Currently, Class A employers pay PRSI at the rate of 8.5% where weekly earnings are between €38 and €376. Once weekly earnings exceed €376, the rate of employer PRSI is 10.75%.
The estimated increase in the PRSI yield to the Social Insurance Fund from increasing the class A employer PRSI rates by 2% is provided in the following table:
|
% Increase in Rate of Employer PRSI |
Increased Yield from Increase in 8.5% Lower Rate |
Increased Yield from Increase in 10.75% Higher Rate |
Total |
|
2% |
€72m |
€1,366m |
€1,438m |
The estimated yield from increasing the higher PRSI rate of 10.75% to 19.75% for employees earning over €100,000 per annum (applied only earnings over €100,000) is €607m.
These estimates are based on the latest available data and reflect macro-economic indicators for 2018. It should be noted that these estimates do not take possible changes in employer behaviour arising from increasing the rates of contributions into account.