Ciarán Lynch (Cork South Central, Labour)
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Question 156: To ask the Minister for Finance the cost to the Exchequer of public servants wages and salaries; if that figure included the cost of employer's PRSI contributions; if so, the cost of such contributions; the estimated amount of those wages and salaries which is returned to the Exchequer in income tax, employees PRSI, health levy, income levy, public service pension levy and superannuation contributions; the current estimated marginal tax rate, including PRSI, all levies and superannuation contributions, of public servants earning €30,000, €50,000, €75,000, €100,000 and €150,000 per annum; and if he will make a statement on the matter. [41341/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The latest available figures on incomes of public sector employees is derived from income tax returns filed for the income tax year 2007 and representing about 96 per cent of all returns expected at the time the data were compiled for analytical purposes. On this basis the incomes from the employment of public sector employees amounted to close on €15.1 billion. This figure includes the combined employment income of married couples where both spouses are earning as it is not possible to identify the precise amount of the income earned by the second spouse that arises from public sector employment.

I am informed by the Revenue Commissioners that the most recent available year for collection data is 2008. The yields in 2008 from PRSI contributions, paid over by employers, in respect of public sector employees taxed under the PAYE system are estimated at €2.3 billion. This amount is a combination of employer and employee social insurance contributions and employee health levy. A breakdown of the 3 components that make up the total PRSI amount is not readily available. Corresponding payments of PAYE tax amounted to €2.9 billion. Revenue does not have the corresponding figures for the income levy as it did not apply in 2008.

The Revised Estimates for Public Services 2009 (REV) estimated that for 2009 receipts from the public service pension-related deduction in 2009 would be approximately €940 million. Figures to end-September show receipts from the pension-related deduction of the order of €540 million, and is expected to be broadly on target at end-year. The end-September figure does not include receipts from the employees of Local Authorities. In addition, estimates of superannuation contributions coming to some €540 million in 2009 were published in the Rev. I should point out that the marginal tax rate comprises income tax, income and health levies and PRSI. The marginal tax rates for single public servants earning €30,000, €50,000, €75,000, €100,000 and €150,000 per annum are set out below.

Marginal Tax Rate 2009

In addition, the public service pension levy is calculated on the following basis:

· First 15,000 of earning exempt,

· 5% on the next €5,000 of earnings,

· 10% on earning between €20,000 and €60,000 and

· 10.5% on earning above €60,000

Marginal Pension Levy Rate 2009

As the Deputy is aware, there are many superannuation contributions schemes in operation throughout the public service. The rates vary significantly depending on the sector involved and the particular scheme. The sector identifier used on the tax records is based on the 4-digit NACE code (Rev. 1), which is an internationally recognised economic activity code system. The information provided in relation to public sector employees is based on activities which are classified in the NACE code system as Public administration and defence; compulsory social security, Education and Health and Social work but excluding the categories of Driving School Activities, Dental Practice Activities and Veterinary Activities as being more appropriate to the private sector. The source of the information provided in relation to numbers and tax is the P35 end year returns filed by employers in respect of their employees but does not include the corresponding figures relating to taxpayers who are required to return an income tax return form 11 where non-PAYE income is greater than €3,174.