Tuesday, 12 March 2019

Ceisteanna (629)

Pearse Doherty

Ceist:

629. Deputy Pearse Doherty asked the Minister for Employment Affairs and Social Protection the estimated cost of increasing the level at which the higher rate of employer PRSI commences at to €452.20 a week; and if she will make a statement on the matter. [12156/19]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Employment)

The National Training Fund Levy (NTFL), collected alongside Employer PRSI for Classes A and H, increased by 0.1% from 0.8% to 0.9% from 1 January 2019. This means that Employer rates (combined PRSI and NTFL) for Classes A and H increased by 0.1% from 1 January 2019.

Currently, Class A employers pay PRSI at the rate of 8.7% where weekly earnings are between €38 and €386. Once weekly earnings exceed €386, the rate of employer PRSI is 10.95%.

The estimated cost to the Social Insurance Fund of raising the weekly 8.7% threshold to €425.20 and the estimated number of employments impacted by such a change are set out in the following table -

Thresholds:

Higher rate threshold

€425.20

Cost

€21.7 million

Employments affected

86,002

These estimates are based on the latest available data and reflect macro-economic indicators for 2019. It should be noted that the estimates do not take possible changes in employer behaviour arising from changing rate thresholds into account.

I hope this clarifies the matter for the Deputy.

Question No. 630 answered with Question No. 628.