Eric Byrne (Dublin South Central, Labour)
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Question 97: To ask the Minister for Social Protection the likely additional yield if PRSI was calculated on the same basis of assessment as the universal social charge. [9923/11]

Joan Burton (Dublin West, Labour)
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PRSI differs substantially from the Universal Social Charge in that the Universal Social Charge is a tax on gross income whereas PRSI represents a contribution by, and in respect of, workers, which allows those workers to establish entitlement to a range of short and long term social insurance benefits.

The basis and rationale for charging PRSI and the Universal Social Charge also differ significantly. PRSI in respect of employees is payable by both the employee and the employer, whereas liability for the Universal Social Charge falls solely on the individual taxpayer. The rate of PRSI contribution for employees and the self-employed differs substantially (14.75% is payable in respect of Class A employees, while 4% is payable by self-employed contributors). This is reflected in the range of different benefits to which entitlement may be established. The Universal Charge is applied to gross annual income (whether from employment or self-employment) where it exceeds €4,004 (€77 per week).

The calculation of the likely additional yield if PRSI were charged on the same basis of assessment as the Universal Social Charge is not possible at this stage as it would involve estimation of additional income for the Social Insurance Fund as well as the costs attached to social insurance entitlements which are likely to arise. Difficulty with the estimate is compounded by whether the rate of employer contribution would also change and whether, and at what level, a floor would apply.