Maureen O'Sullivan (Dublin Central, Independent)
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Question 650: To ask the Minister for Social and Family Affairs the breakdown on the matters covered by an individual's PRSI contribution. [14602/10]

Éamon Ó Cuív (Galway West, Fianna Fail)
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In general, PRSI contribution classes are decided by the nature of a persons employment and the amount of the employee's gross reckonable earnings in any week. PRSI Class A, the standard class paid by the majority of employees, encompasses people in industrial, commercial and service-type employment who are employed under a contract of service with gross earnings of €38 or more per week from all employments; Civil and Public Servants recruited from 6 April, 1995 and Community Employment participants from 6 April, 1996. The benefits to which employees may build entitlement under Class A are as follows: · Jobseeker's Benefit · Illness Benefit · Health and Safety Benefit · Maternity Benefit · Adoptive Benefit · Invalidity Pension · Widow's or Widower's (Contributory) Pension · Guardian's Payment (Contributory) · State Pension (Transition) · State Pension (Contributory) · Bereavement Grant · Treatment Benefit · Occupational Injuries Benefits · Carer's Benefit

Olivia Mitchell (Dublin South, Fine Gael)
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Question 651: To ask the Minister for Social and Family Affairs if, in view of the fact that companies are not assessed for PRSI on employees' pension contributions, there is any obligation on such companies to pass on the PRSI saving of 10.75%; if his attention has been drawn to the fact that not to do so results in the company gaining from an employees' pension; and if he will make a statement on the matter. [14646/10]

Éamon Ó Cuív (Galway West, Fianna Fail)
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The reckonable earnings of employees for PRSI purposes are defined as earnings derived from insurable employment and insurable (occupational injuries) employment. This definition is clarified in regulations as relating, in most circumstances, to anything assessable to income tax under Schedule E of the Taxes Consolidation Act, 1997. Under income tax rules, subject to certain limits, amounts contributed by employees to occupational pension schemes are exempt from income tax. Therefore they do not fall within the charge to PRSI. A contribution payable under the PRSI system is usually comprised of an employee portion and an employer portion. Nonetheless the contribution is a single payment. On this basis where a payment is excepted from the charge to social insurance this exception applies equally to the employee and employer portions. Exempting pension contributions from tax and social insurance is consistent with Government policy of ensuring the adequacy of retirement incomes and the long-term sustainability of our pensions systems.