Joe O'Brien (Dublin Fingal, Green Party) | Oireachtas source

According to data compiled by my Department, the average employer social insurance contribution rate across the EU stands at approximately 19.5%. Ireland's current higher employer social insurance rate is 11.05%. However, it is important to note that social insurance rates across Europe are not directly comparable as different benefits, thresholds and ceilings apply across each member state. Following Government decisions in response to the report of the Commission on Pensions and the publication of the Actuarial Review of the Social Insurance Fund, it was agreed that the Minister would bring forward a roadmap for PRSI changes as one of the primary means of addressing the projected shortfalls in social insurance income. This approach was agreed as an alternative to increasing the State pension age.

In recognition of the long-term sustainability challenges facing the Social Insurance Fund, in budget 2024 the Government agreed to incrementally increase all PRSI rates on employer, employee and self-employed by 0.4 percentage points over the period 2024 to 2028. As a first step, rates will increase by 0.1 percent from October 2024. A further review of the adequacy of the social insurance rates will be carried out once the next actuarial review is completed in 2027. I am satisfied that the approach decided by the Government achieves a fair balance between addressing the long-term sustainability of the Social Insurance Fund, without unduly impinging on the incomes of workers and the cost of doing business in Ireland.

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