Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I move amendment No. 1:

“Amendment of section 13 of Principal Act

4. Section 13(2)(d) of the Principal Act is amended—

(a) in subparagraph (i), by the substitution of “€496” for “€441”, and

(b) in subparagraph (ii), by the substitution of “€496” for “€441”.”.

Section 4 amends section 21(1) of the principal Act by substituting the new minimum and annual self-employment payment of €650 for the old rate of €500 effective from 1 October. It also substitutes "Self-employment contributions shall be paid by self-employed contributors in accordance with the following provisions" with "Subject to section 38BA, self-employment contributions shall be paid by self-employed contributors in accordance with the following provisions".

The amendment provides for an increase in the employer PRSI threshold from €441 to €496 per week with effect from 1 October. This increase is one of a range of measures agreed by Government to reduce costs for small- and medium-sized businesses. Section 13 of the Social Welfare Consolidation Act 2005 sets our rates of PRSI contributions for employees and for employers. There are two rates of employer contribution, namely, a lower rate of 8.8% on employee gross earnings up to and including €441 per week and a rate of 11.05% on all employee earnings once they exceed €441 per week. This change will ensure employers with employees working full time on the national minimum wage will not be required to pay the higher rate of PRSI and will instead pay the lower rate.