Written answers
Wednesday, 8 February 2006
Department of Social and Family Affairs
Social Insurance
10:00 pm
Enda Kenny (Mayo, Fine Gael)
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Question 266: To ask the Minister for Social and Family Affairs the yield per annum for each rate of PRSI for the years 2002 to 2005, inclusive; the employee exemption limits for each year; and if he will make a statement on the matter. [4519/06]
Séamus Brennan (Dublin South, Fianna Fail)
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The PRSI yield for the year 2003 for each PRSI class collected through the PAYE system is as outlined in the following table:
2003 | |||
PRSI Class | Yield €m | A | 5,288,168,772 |
B | 68,961,337 | C | 2,534,308 |
D | 237,333,129 | E | 467,180 |
H | 43,869,294 | J | 11,162,240 |
K | 21,849,605 | M | 1,765,524 |
P | 4,105 | S | 145,209,651 |
Unknown | 5,405,029 | Total | 5,826,730,174 |
This analysis is carried out when the bulk of the detailed contribution information has been received from employers after the end of the particular tax year. It should be noted that the data in the above table are subject to continuous change as remittances and details relating to 2003 continue to be received.
The total yield for PRSI collected through the PAYE system for the year 2002 was €5,409,827,580 but an analysis of each class is not available. The analysis of the PRSI yield for 2004 is not yet available but it is expected to be available by end March 2006. The analysis for 2005 will not be available before the end of March 2007.
PRSI contributions operate on a tiered basis in order to enhance employment incentives for low-earning employees. Employees are exempt from liability for PRSI contributions on weekly reckonable earnings below a specified threshold while still enjoying the benefits of social insurance coverage.
The PRSI exemption threshold for each year during the period between 2002 and 2005 was €287. On 1 January 2006, the employee PRSI threshold for liability to social insurance contributions was increased from €287 to €300 per week at a full year cost of €8.7 million. The new €300 threshold benefits employees earning the national minimum wage of €7.65 per hour.
At and above this exemption threshold, the employee rate becomes operable for all earnings. However, contributors are entitled to a PRSI-free allowance of €26 or €127 per week, as appropriate, which reduces the immediate step-effect of exceeding the threshold.
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