Brendan Griffin (Kerry South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

166. To ask the Minister for Social Protection to set down her views on re-instating the employer PRSI relief, that is, the 4.25% rate provided to businesses from 2011 to 2013, considering the risk to the future feasibility of smaller businesses due to the return to the 8.5% rate; and if she will make a statement on the matter. [5552/15]

Joan Burton (Dublin West, Labour)
Link to this: Individually | In context | Oireachtas source

Employer PRSI is payable on earnings at the rate of 10.75% in respect of weekly earnings in excess of €356 and 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. This measure was implemented on a 2½ year limited time basis to apply from 1 July 2011 until 31 December 2013. The 4.25% employer PRSI rate reverted to the original 8.5% rate from 1 January 2014.

The reversion of the employer PRSI rate to 8.5% was provided for in legislation and was built into the PRSI income base for 2014 and subsequent years. Re-instating the 4.25% employer PRSI rate would reduce the annual PRSI yield to the Social Insurance Fund by an estimated €195 million in a full year.