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

I always outlined how, to keep the pension age at 66, we would have to increase PRSI. These are small incremental increases of approximately 90 cent per week for the average industrial wage. They will start in October. We are giving certainty for the next five years and I think that is fair. In five years’ time there will be a review. There are always reviews of the SIF and future governments can make decisions after that. We are doing this now, at a time when we are in full employment, which is the best time to do it. There is never a good time to increase PRSI, but these are small, incremental increases. It is important we do that in order that the SIF is sustainable into the future.

With regard to the amendment I have tabled, this is being done in line with the minimum wage increase and that is why we did not make it up to the full figure of €500. It has increased per the minimum wage increase and the threshold matches that.

This is one of a number of measures announced by the Government to reduce costs for small- and medium-sized businesses, including those arising from the increase in the national minimum wage, the introduction of auto-enrolment, which is progressing well, and statutory sick pay. We are trying to be fair here and changing this in line with the increases in the minimum wage.