The Government is conscious of the need to regain and enhance competitiveness within the economy if we are to be able to begin to create the levels of employment required to meet the challenges posed by our very high level of unemployment. With this aim in mind, we have indicated that any adverse effects on employment which may arise through the restoration of the national minimum wage to its previous level will be mitigated through targeted reductions in the level of PRSI contributions. As a consequence, the jobs initiative announced the halving of the lower 8.5% rate of employer PRSI contribution until the end of 2013 on jobs that pay up to €356 per week. This measure, which is in line with the commitment given in the programme for Government, is being provided for in section 3 and will take effect from the start of July. Section 23 also provides for a related halving of the national training fund levy to give a new lower employer PRSI contribution rate of 4.25%. It should also be noted that the employer PRSI exemption scheme will remain in place until the end of this year for businesses that take on workers under the scheme.

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