Pearse Doherty
Ceist:1526. Deputy Pearse Doherty asked the Minister for Social Protection the estimated saving to her Department of moving an additional 5,000 long-term unemployed into employment via JobsPlus in 2018. [35829/17]
Amharc ar fhreagraWednesday, 26 July 2017
Ceisteanna (1526)
Freagraí scríofa
As the Deputy is aware, JobsPlus provides a direct monthly financial incentive to employers who recruit employees who are long-term on the live register and those transitioning into employment. It provides employers with two levels of payment: €7,500 and €10,000. The €7,500 is paid primarily in respect of those who are 12 months or more on the live register with the higher grant paid in respect of those who have been unemployed for more than 24 months. The incentive is paid in monthly instalments over a two year period provided the employment is maintained.
The full year cost of the JobsPlus incentive to support an employee who has been unemployed for between 12 and 24 months is €3,750. The full year cost to support an employee who has been unemployed for longer than 24 months is €5,000. The JobsPlus incentive is paid at the higher rate in respect of approximately 72% of employees on the scheme. Therefore, the full year cost of 5,000 JobsPlus places is estimated at approximately €23.25 million.
The full year cost of the jobseeker's payment for 5,000 customers is estimated at €52.5 million. Therefore, the estimated net savings from moving 5,000 people who were long-term unemployed into employment, via the JobsPlus incentive, would be in the order of €29 million.
The above costings do not include the additional income that arises for the Exchequer from payment of income tax, PRSI and USC from employment or the additional cost from employees who may have an entitlement to receive family income supplement (FIS) or the back to work family dividend.
I hope this clarifies the matter for the Deputy.