Written answers

Thursday, 24 November 2005

Department of Social and Family Affairs

Social Insurance

5:00 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 151: To ask the Minister for Social and Family Affairs the cost of increasing the threshold for social insurance from €127 to €200 and €300, respectively; when the threshold was first introduced; and its value in 1997 and 2000. [36213/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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The PRSI-free allowance for employees paying the ordinary rate of PRSI was first introduced in 1995. For that year, a weekly non-cumulative threshold of £50, €63.49, per week applied to employees covered under classes A, E and H and with weekly pay exceeding £178, €226.03. A corresponding allowance for individuals in classes B, C, D and S was £10, €12.69.

In 1997, the PRSI-free allowance for employees in classes A, E and H and with weekly reckonable earnings above £197, €250.15, was £80, €101.58, per week and £20, €25.39, per week for employees in classes B, C, D and S. In 2000, the PRSI-free allowance for employees in classes A, E and H and with weekly reckonable earnings above £226, €287, was £100, €127, per week and £20, €25.39, per week for employees in classes B, C, D and S. It is estimated that an upward change in the current €127 allowance threshold to €200 or €300 would reduce employee contributions to the social insurance fund by €186 million or €440 million, respectively.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 152: To ask the Minister for Social and Family Affairs the cost of increasing the exemption level for social insurance from €287 to €400 and to €500 respectively; when this exemption was first introduced; and its value in 1997 and 2000. [36214/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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The PRSI exemption on low earnings was first introduced in 2000. For that year, employees covered under classes A, B, C, D, E and H, with reckonable weekly earnings of not more than £226, €287, were exempt from paying PRSI for that week. The exemption threshold has not changed since. It is estimated that an upward change in the current €287 exemption level to €400 or €500 would reduce employee contributions to the social insurance fund by €103 million or €251 million, respectively.

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