Róisín Shortall (Dublin North West, Independent)
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276. To ask the Minister for Social Protection the cost of eliminating the Pay Related Social Insurance step effect, as it impacts on employees. [22514/15]

Joan Burton (Dublin West, Labour)
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Employee PRSI is not charged where weekly earnings are €352 or less. Where weekly earnings exceed €352, employees become liable to pay PRSI which is charged at the rate of 4% on all earnings. The fact that PRSI is charged on all income once the €352 threshold is exceeded causes what is referred to as the “step effect”.

The Department is currently examining the impact of this step effect and possible means of addressing its impact on employees. This work is ongoing and it is not possible, at this stage to quantify the costs associated. Any changes to PRSI would have to be considered in a budgetary context.