Simon Coveney (Cork South Central, Fine Gael)
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Pay Related Social Insurance (PRSI) is primarily a matter for the Minister for Social Protection. As per the PRSI Roadmap which has been agreed by Government, there will be incremental increases in all classes of PRSI (employer, employee and self-employed) over the coming years. These increases will support the retention of the State Pension Age at 66. They are as follows:

• 2024: 0.1 percentage points
• 2025: 0.1 percentage points
• 2026: 0.15 percentage points
• 2027: 0.15 percentage points
• 2028: 0.2 percentage points

Alongside the PRSI Roadmap, the Government has also advanced a range of measures to improve working conditions in Ireland, including the transition to a Living Wage, Auto-Enrolment Retirement Savings, Parent’s Leave and Benefit, Statutory Sick Pay, an Additional Public Holiday, the Living Wage, and Remote Working. These improvements will bring wider societal benefits and will serve to bring Ireland in line with other advanced economies.

The Government previously directed that the Department of Enterprise, Trade and Employment – in conjunction with the Department of Social Protection – undertake an assessment of the combined impact of proposed measures to improve working conditions in Ireland. This was published on March 5th 2024. The paper recognises that businesses may face rising costs, in particular in the short term. Reflecting the findings of this assessment, a range of measures are being brought forward to assist businesses in adjusting to these increased costs as well as more generally to improve cost competitiveness of firms.

One of the measures includes the preparation of an options paper on the application of the lower (8.8%) rate of Employer PRSI contribution. The Minister for Social Protection will consult with the Minister for Finance, the Minister for Public Expenditure, NDP Delivery and Reform and the Minister for Enterprise, Trade and Employment to develop a paper on the application of the lower (8.8%) rate of Employer PRSI contribution and revert to Government by end-April 2024. This paper could also consider how to target the National Training Fund to help assist in reducing costs for business. The Government will consider the outcome of this paper ahead of making any decisions on changes to employer PRSI rates.

This Government has adopted an active approach in supporting Irish businesses across multiple crises over the last number of years, including the introduction of unemployment supports during the COVID -19 pandemic, the provision of financial supports to firms facing the implications of Brexit, and more recently, through the period of increasing overhead costs. My Department is fully committed to support businesses and the measures included in Budget 2024 reflect this.