Niall Collins (Limerick County, Fianna Fail)
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2128. To ask the Minister for Social Protection the cost of incentivising job creation via headcount growth (details supplied), in tabular form. [28732/17]

Regina Doherty (Meath East, Fine Gael)
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The JobsPlus programme operated by my Department replaced the previous PRSI exemption scheme and incentivises job creation by providing subsidies paid to employers who offer full-time work of over 30 hours per week and spanning at least a 4 day week to targeted jobseekers.

In the case of a jobseeker out of the labour market for over 24 months, a subsidy of €10,000 is paid to the employer over two years, in respect of each such additional employee engaged. A subsidy of €7,500 over two years is available to employers who recruit a jobseeker who is between 12 and 24 months unemployed. Payment is made directly to the employer on a monthly basis.

In 2015, eligibility was broadened to include young jobseekers (under 25 years) 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. This incentive was further extended in 2016 to include Programme Refugees in receipt of jobseeker’s allowance and no qualifying period applies.

JobsPlus is available to all employers offering full time work to additional new employees in the private sector (including commercial semi-state) as well as the community, not-for-profit and voluntary sectors. There is no limit on the number of new recruits per employer. Start-up employers may also avail of the scheme where the business has commenced operations. In May 2017, the Department made payments totalling over €2.4 million to 3,816 employers in respect of 5,077 employees.

It is not clear if the Deputy is proposing that the PRSI exemption scheme outlined would apply in respect of all new additional employees recruited by employers, including new employees who were not registered with my Department as jobseekers or who were not on an analogous welfare payment. If this is the case, it is not possible to quantify the reduction in PRSI income that would arise but it is likely that there would be significant deadweight costs.

The current JobsPlus scheme offers a significant incentive to recruit long-term jobseekers. For example, the €10,000 JobsPlus payment outlined above is more financially advantageous to an employer than an Employer PRSI exemption over two years where an employee’s annual earnings are less than €46,400. The equivalent annual earnings in respect of the €7,500 payment is just under €35,000.