Paul Connaughton Snr (Galway East, Fine Gael)
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Question 517: To ask the Minister for Finance the reason PRSI is deducted from pensioners who worked for the ESB; and if he will make a statement on the matter. [25383/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I understand from inquiries made by my Department that the deduction to which the Deputy refers is the health contribution. The health contribution is currently charged at 2% once a person's income exceeds €400 per week or €20,800 per year. Once the threshold for liability is exceeded, the contribution is payable on all reckonable income unless the income or the person in receipt of same falls within an exempt category. The exempt categories include certain social welfare recipients as well as holders of medical cards, including those aged 70 years of age or over, or their EU equivalents. The exemptions in question are provided for in the Health Contributions Act 1979, as amended.