Pearse Doherty (Donegal South West, Sinn Fein)
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Question 193: To ask the Minister for Social Protection the number of employees in each year from 2007 to date in 2011 whose earnings meant that their employers were liable for the low rate of employers PRSI of 8.5%; the steps she will take to ensure that the lowering of the rate of PRSI will not encourage employers to reduce wages to come within the qualifying criteria for this new measure; and if she will make a statement on the matter. [9655/11]

Joan Burton (Dublin West, Labour)
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Workers whose weekly earnings are below €356 and for whom employers pay PRSI contributions at the rate of 8.5%, fall into PRSI Sub-classes AO and AX. (Sub-class AO applies to employees whose weekly earnings are between €38 and €352. Sub-class AX applies where weekly earnings are between €352.01 and €356.00).

The numbers of contributors insurable at PRSI Sub-classes A0 and AX for the years 2007, 2008 and 2009 are set out as follows.

Returns for subsequent years are not available. The Programme for Government contains a commitment to halve the lower 8.5% rate of PRSI up to end 2013 on jobs paying up to €356 per week.

A lower rate of employers' PRSI for workers earning below €356 per week, has been in operation for a number of years. There is no particular evidence to suggest that the existence of a lower rate of PRSI encourages employers to reduce wages to come within the qualifying criteria to attract the lower rate.