Michael McGrath (Cork South Central, Fianna Fail)
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300. To ask the Minister for Social Protection if PRSI is to be levied on the gross amount of rental income a person receives or the net amount after allowable expenses are deducted, interest expense and so on; and if she will make a statement on the matter. [53819/13]

Joan Burton (Dublin West, Labour)
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In general PRSI is chargeable on all income including rental income. There have however been a number of exemptions from PRSI for specific categories of contributors, including the exemption applied to the additional income of employed contributors and occupational pensioners under age 66 years where their only source of additional income is unearned. Unearned income includes rental income, investment income, dividends and interest on deposits and savings.

With effect from 1 January 2014, this unearned income will be liable to PRSI at 4%, provided the person is a chargeable person in accordance with the Revenue definition.

In general the rules which apply to income for taxation purposes also apply to income for the purposes of charging PRSI. Therefore the income on which PRSI is applied will, in general, be the same as that for charging of tax.

This income will be chargeable at the PRSI Class K rate of 4%. This new PRSI charge will not give rise to any additional social insurance benefits. The individuals may however qualify separately for social insurance entitlements based on PRSI paid on other sources of income, such as PRSI paid on income from their employment.