Written answers

Tuesday, 1 December 2009

Department of Enterprise, Trade and Employment

FÁS Training Programmes

12:00 pm

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 73: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if there has been a reduction in the fourth year electrical apprentice training rate from €647.01 to €528.37; the reason FÁS payslips do not show PRSI contributions; and if she will make a statement on the matter. [43962/09]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The weekly training allowance paid to an apprentice who is attending off-the-job training in a FÁS Training Centre, Institute of Technology or College of Further Education is established by reference to the industry sector net pay norm.

To establish the net pay norm for a particular sector, FÁS use the following methodology: The gross wage norm notified by the sector in question is reduced by the amount of normal PAYE, PRSI and income levy deductions that ordinarily apply to the gross wage norm in the sector. The amount then remaining is the net pay norm for the sector.

In the electrical sector, the gross wage norm for a fourth year apprentice is €647.01 and the combined equivalent PAYE, PRSI and income levy deduction is computed as €118.64.

The training allowance, based on the net wage norm for the sector, paid to fourth year electrical apprentices while attending off-the-job training is therefore €528.37 per week.

As the weekly training allowance is not treated as pay under the PAYE and PRSI regulations, FÁS pay slips do not show deductions under these categories. Deductions made by FÁS from the gross wage norm are not for the purposes of PAYE and PRSI but rather to ensure that the training allowances are equivalent to the net rather than the gross industry wage in the sector.

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