Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 541: To ask the Minister for Social and Family Affairs her views on lowering employer PRSI contributions when employers take on young people aged 18 to 19 years to assist them to obtain jobs; and if she will make a statement on the matter. [15416/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The PRSI system has a number of features designed to facilitate access to employment. Among these are the reduced rates of employer PRSI payable at lower income levels.

Class A PRSI is the social insurance class paid by most ordinary employees, encompassing circa 80% of all insured persons. The AO and AX subclasses feature a reduced 8.50% rate of employer PRSI, as opposed to the general employer rate of 10.75%. These subclasses are payable in respect of employments where weekly pay is €356 or lower.

In general, young people entering the workforce do so in junior or part-time positions with lower rates of pay. For such employments the lower rates of employer PRSI act as substantial incentive to employers to create opportunities for young people to enter the workforce. Any future changes to PRSI rates would be considered in a budgetary context.