Lucinda Creighton (Dublin South East, Independent)
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25. To ask the Minister for Social Protection her views on whether the introduction of the PRSI rate of 4.25% on lower paid workers as part of the jobs initiative increased the total number of employees on the national minimum wage during the period of its existence; if she is concerned that a return to the higher rate in 2014 may slow this employment growth for persons in this income bracket; and if she will make a statement on the matter. [50847/13]

Joan Burton (Dublin West, Labour)
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Employer PRSI is payable on earnings at the rate of 10.75% in respect of weekly earnings in excess of €356 and, from 1 January 2014, at 8.5% on weekly earnings of €356 or less.As part of the 2011 Jobs Initiative, the Minister for Finance announced the halving of the 8.5% rate of employer PRSI to 4.25%, as a means of helping job creation and improving labour cost competitiveness, particularly in the tourism and other employment-rich areas of the economy. The measure was implemented in July on a 2½ year time limited basis to apply from 1 July 2011 until 31 December 2013. The 4.25% employer PRSI rate will therefore revert to the original 8.5% rate from 1 January 2014.

Retaining the 4.25% rate of employer PRSI in 2014 would reduce the expected PRSI yield to the Social Insurance Fund by €195 million in a full year. As the reversion of the employer rate to 8.5% is provided for in legislation, it has already been built into the PRSI income base for 2014 and subsequent years. The level of wages paid to employees is a function of a number of critical factors including the prevailing economic environment. There is no information available to indicate that this measure impacted, or will have an impact, on the number of employees on the national minimum wage.