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

I thank Deputy Murphy. The PRSI system plays a fundamental and supportive role in our society. For the PRSI contributions they make, employees and self-employed workers receive benefits for the periods spent out of employment during periods of unemployment, illness or maternity, for example, and upon retirement from the workforce.

One of the findings of the latest actuarial review of the Social Insurance Fund was that the fund will experience significant long-term sustainability challenges. This is mainly driven by the challenge Ireland will face concerning demographics, particularly the ageing of our population.

All PRSI rates applicable to employees, employers and the self-employed are significantly below the EU average. The rates are not directly comparable because different approaches, thresholds and ceilings apply across member states. It is in this context that we are undertaking a collective, evenly spread and gradual programme of increasing PRSI rates across all three contributors to the Social Insurance Fund – employees, employers and the self-employed – between 2024 and 2028. These increases will support the retention of the State pension age at 66 years, help address the long-term sustainability challenges facing the Social Insurance Fund and also provide for the new jobseeker's pay-related benefit. The Bill to provide for these increases is currently progressing through the Oireachtas.

I am satisfied that the approach decided upon by the Government achieves a fair balance in 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.

See this speech in context