Joan Collins (Dublin South Central, People Before Profit Alliance)
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Question 67: To ask the Minister for Social Protection her views regarding the possible creation of a race to the bottom in workers' pay and conditions as a result of the proposals to halve employers PRSI for employees earning €356 per week or under; and if she will make a statement on the matter. [15345/11]

Joan Burton (Dublin West, Labour)
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Workers whose weekly earnings are above €38 and below €356, and for whom employers pay PRSI contributions at the rate of 8.5%, fall into PRSI Sub-classes AO and AX. The Programme for Government contains a commitment to halve the lower 8.5% rate of PRSI up to end 2013. This commitment is being implemented with effect from 2 July, 2011. A lower rate of employers' PRSI for workers earnings below €356 per week has been in operation for a number of years. There is no particular evidence to suggest that the existence of a lower rate of PRSI encourages employers to reduce wages to come within the qualifying criteria that attract the lower rate.