Tuesday, 26 March 2019

Ceisteanna (1250)

Michael McGrath


1250. Deputy Michael McGrath asked the Minister for Employment Affairs and Social Protection the number of hours per week an employee works in order to receive a full class A stamp; and if she will make a statement on the matter. [13019/19]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Employment)

People within PRSI Class A are those in industrial, commercial and service-type employment who are employed under a contract of service with reckonable pay of €38 or more per week from all employments, and Civil and Public Servants recruited from 6 April 1995.

Currently, there is no set number of hours per week that must be worked.

Until 1991 the threshold for access to social insurance was based on hours worked – 18 hours.

From April 1991 onwards, the person was insurable at the Class A rate of PRSI if their income equalled or exceeded £25 per week.  This threshold was increased to £30 per week from April 1994 and upon conversion to Euro the £30 threshold became €38.

Therefore, based on the current minimum hourly rate of €9.80, an employee working under 4 hours per week gains access to the full range of social insurance benefits.

Employees earning €38 or over per week do not pay the employee portion of the PRSI contribution until their weekly earnings exceed €352.  They then pay the employee PRSI rate of 4% on all earnings, with a PRSI credit to reduce the "step effect".  Employers pay a PRSI contribution of 8.7% (inclusive of the National Training Fund (NTF) levy of 0.9%) on all earnings once weekly earnings equal or exceed €38 while they pay a higher rate of 10.95% (inclusive of the NTF Levy of 0.9%) once earnings exceed €386 per week.

I hope this clarifies the matter for the Deputy.