Dáil Éireann Debate, Tuesday - 24 July 2018
2500. Deputy John Brady asked the Minister for Employment Affairs and Social Protection the estimated amount of revenue which could be raised if Ireland's rate of employer PRSI contributions was raised in line with the EU average with Hungary, Belgium and France; and if she will make a statement on the matter. [33453/18]
Amharc ar fhreagraThe information requested by the Deputy is contained in the following table.
|
- |
Employer Social Insurance Rate |
Yield from Increase of 8.6% Lower Employer Rate €m |
Yield from Increase of 10.85% Higher Employer Rate €m |
Total €m |
|
Hungary |
21% |
520.8 |
7,224.8 |
7,745.6 |
|
Belgium |
27.5% |
793.8 |
11,851.5 |
12,645.3 |
|
France |
45% |
1,528.8 |
24,308.0 |
26,133.8 |
|
EU Average |
20% |
478.8 |
6,513.0 |
6,991.8 |
It should be noted that the headline rates of social security and how social security systems across Europe operate are not directly comparable. For example, in Europe many elements of employer and employee contributions have monthly ceilings on those contribution rates, ceilings which do not exist in the Irish system. Another example of a difference across the various social security schemes in Europe occurs in France, where a flat-rate contribution of €1.50 per hour for companies with less than 20 employees is payable to the social security system in respect of overtime. Across Europe social security contributions finance a range of contingencies which, in Ireland, are financed through the general taxation system. For example, in Belgium, social security contributions contribute to the cost of long-term care.
These estimates are based on PRSI Class A contributors. They use the latest available data and reflects macro-economic indicators for 2019. It should be noted that these estimates do not take into account any possible changes in employer behaviour arising from changing rates of contribution.
