Written answers

Wednesday, 6 July 2016

Department of Social Protection

Social Insurance Yield

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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146. To ask the Minister for Social Protection the reduction in the yield from social insurance in a calendar year if the PRSI employers rate of 8.5% was extended for employees earning up to €385, €390, €395 and €400 per week; and if he will make a statement on the matter. [19904/16]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Currently employers pay PRSI at the rate of 8.5% where weekly earnings are between €38 and €376. Once weekly earnings exceed €376, the rate of employer PRSI is 10.75%.

The reduction in the PRSI yield to the Social Insurance Fund of increasing the upper threshold at which 8.5% rate of employer PRSI applies, is contained in the following table:

Employer PRSI New Upper Threshold

for 8.5% Rate
Full Year CostEmployments Affected
€385€3.3m12,860
€390€5.1m19,380
€395€8.1m30,000
€400€10.0m36,730

These estimates are based on the latest available data and reflect macro-economic indicators for 2017. It should be noted that the estimates do not take possible changes in employer or employee behaviour into account.

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