Seán Sherlock (Cork East, Labour) | Oireachtas source

I move amendment No. 3:

In page 4, between lines 6 and 7, to insert the following: “Report on impact of employee PRSI contributions on minimum wage employees

5.The Minister shall, within 6 months of the passing of this Act, lay a report before both Houses of the Oireachtas on the impact of employee PRSI contribution rates on workers earning the national minimum wage, having regard both to the pending increase in the national minimum hourly rate of pay and to the proposed transition to a Living Wage.”.

We are back to the issue of reports but, unfortunately, we are now restricted to that in legislation of this nature. They are the only way we can have scope to push back at the Government. On Second Stage, the Minister stated:

Weekly earnings in excess of €410 attract employer PRSI at a higher rate of 11.05%. The earnings threshold increase from €410 to €441 in section 4 is designed to take account of the forthcoming increase in the minimum wage from €10.50 to €11.30 per hour.

Employers with employees benefiting from the increase in the national minimum wage will continue to attract the lower rate of employer PRSI.

The amendment seeks to provide for some sort of an assessment of how that increase is impacting on both the employer and the employee in terms of the potential perceived loss of real income as a result of the increase in PRSI contributions. I seek some clarity from the Minister on where she and the Department are in respect of how, in real terms, the increase in the minimum wage will work. We do not want to have a negative impact, in real terms, on real income whereby increasing wages will be offset by increases in PRSI. I anticipate the Minister will tell me that, in real terms, that will not be the case and there is a provision for that, but in putting forward the amendment I am seeking further clarity on whether, if there is to be an increase in the national minimum wage, it will be worthwhile for an employee to receive that increase whereby it will not be taken away in taxation.

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