Written answers

Thursday, 17 December 2015

Department of Social Protection

Social Insurance

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

108. To ask the Tánaiste and Minister for Social Protection if she has examined a scheme that focuses on early-stage companies and rewards growth by offering exemptions from and reductions in employers' pay-related social insurance relative to the number of staff employed or the company's payroll bill, in 2016; the cost for the first additional employee taken on to be exempt from employers pay-related social insurance for a period of two years and for the next five employees, subject to a reduction of 50% on the first €50,000 of gross salary. [46423/15]

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

As my Department does not hold data on the stage of development of particular companies employing workers, it is not possible provide a cost for a scheme to exempt or reduce employer PRSI costs, to reward growth or additional employments in early stage companies.

The issue of supporting companies in the early stages of their development needs to be considered in the broader context of the multitude of expenditure and tax instruments which can assist these enterprises to succeed.

My Department does however provide financial support to companies engaging additional employees through the JobsPlus scheme. JobsPlus was introduced in July 2013 as one of a series of measures contained in the Action Plan for Jobs and replaced two existing schemes, namely the Employer PRSI Exemption scheme and the revenue job assist. The Employer PRSI Exemption scheme reduced the employer's PRSI liability where additional employees (who were formerly unemployed) were engaged.

JobsPlus is available to all employers in the private (including commercial semi-state), community, not-for-profit and voluntary sectors and is available to employers who offer any full-time work of over 30 hours per week and spanning at least a 4 day week. There is no limit on the number of new recruits per employer. Start-up employers may also avail of the scheme, on production of evidence that the business has commenced operations.

For jobseekers who are over 24 months out of the labour market, a subsidy of €10,000 is paid monthly to the employer over two years. A subsidy of €7,500 paid monthly over two years is available to employers who recruit a jobseeker who is between 12 and 24 months unemployed. In 2015 eligibility was broadened to include young jobseekers (under 25 year olds) unemployed for four months or more in the previous 6 months and jobseekers transitioning from a one parent family payment. A subsidy of €7,500 is payable in both instances.

The 2015 provision for JobsPlus is €25.5 million. In November 2015 the Department made payments totalling just under €2.1 million to 3,953 employers in respect of 5,364 employees.

Comments

No comments

Log in or join to post a public comment.