Michael McGrath (Cork South Central, Fianna Fail)
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193. To ask the Minister for Social Protection the yield in 2014 from the 4.25% employers' pay-related social insurance rate, which applied to employees with weekly earnings of less than €356, reverting to the original 8.5% rate; and if she will make a statement on the matter. [12690/15]

Michael McGrath (Cork South Central, Fianna Fail)
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194. To ask the Minister for Social Protection the yield in 2014 from the extension of pay-related social insurance to unearned income; and if she will make a statement on the matter. [12691/15]

Joan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 193 and 194 together.

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 yield in 2014 from the 4.25% employer PRSI rate reverting to the original 8.5% rate was €176 million.

From 1 January 2014, the exemption from PRSI applying to employed contributors and recipients of occupational pensions and occupational survivors pensions aged under 66 years, whose only additional income is unearned income, was abolished. This means that unearned income such as rental income, investment income, dividends and interest on deposits and savings are liable to PRSI at 4% provided the person is a chargeable person in accordance with the Revenue definition.

At the time the measure was implemented it was estimated that the yield for this measure would be €14m in 2014 and €20 million in a full year. At this point it is not possible to provide the actual yield.