Paul Gavan (Sinn Fein) | Oireachtas source

I move amendment No. 1:

In page 3, between lines 15 and 16, to insert the following: “Report on employer pay-related social insurance rebate

3. The Minister shall, within six months of the passing of this Act, prepare and lay before Dáil Éireann a report on establishing an employer pay-related social insurance rebate scheme to provide support for businesses impacted by the rising minimum wage. The relief relates to full-time employees earning €650 a week or less. The supports should be on a tapered basis ensuring the greatest level of support for each employee on minimum wage and tapering until the support is removed for full-time employees earning over €650 weekly. The PRSI credit an employer would receive for an employee on minimum wage would be approximately 2 per cent of the gross weekly wage. The scheme should support businesses adjusting to minimum wage increases and protect employment while ensuring low pay is not incentivised.”.

This relates to our suggestion to introduce an employer pay-related social insurance rebate. It has a particular resonance given the protest last week by the Restaurants Association of Ireland. Do not get me wrong, I have had my differences with those guys over the years, particularly in respect of employee tips, but we managed to get agreement in the end. There is no doubt that small businesses are struggling, particularly in that sector. This is a sensible proposal from Sinn Féin. We are asking that the Minister

within six months of the passing of this Act, [the Minister] prepare and lay before Dáil Éireann a report on establishing an employer pay-related social insurance rebate scheme to provide support for businesses impacted by the rising minimum wage. The relief relates to full-time employees earning €650 a week or less. The supports should be on a tapered basis ensuring the greatest level of support for each employee on minimum wage and tapering until the support is removed for full-time employees earning over €650 weekly. The PRSI credit an employer would receive for an employee on minimum wage would be approximately 2 per cent of the gross weekly wage. The scheme should support businesses adjusting to minimum wage increases and protect employment while ensuring low pay is not incentivised.

The last sentence is key. Small businesses in particular are really struggling. This seems like a sensible proposition, and one that is urgently needed because there seems to be a worrying level of closures, particularly, but not exclusively, in the restaurant sector. This us a common-sense proposal. I imagine it will command broad support. I ask the Minister to take it on board.