Written answers
Friday, 16 September 2016
Department of Social Protection
Tax Yield
Ruth Coppinger (Dublin West, Anti-Austerity Alliance)
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732. To ask the Minister for Social Protection the amount that could be raised from increasing employers’ PRSI towards the EU effective average rate of 20% that is by increasing the effective rate by 1%, 2% or 5%. [25368/16]
Leo 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 increase in the PRSI yield to the Social Insurance Fund from increasing the class A employer PRSI rates by 1%, 2% and 5%, is contained in the following table:
Rate of Employer PRSI | Increased Yield from Increase in 8.5% Lower Rate | Increased Yield from Increase in 10.75% Higher Rate | Total Increased Yield | Employments Affected |
---|---|---|---|---|
1% | €37.3m | €634.1m | €671.4m | 2,433,475 |
2% | €74.6m | €1,268.2m | €1342.8m | 2,433,475 |
5% | €186.5m | €3,170.6m | €3,357.1m | 2,433,475 |
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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