Pearse Doherty (Donegal, Sinn Fein)
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191. To ask the Minister for Finance the estimated savings, on a first- and full-year basis, of restricting the employer PRSI exemption for share-based remuneration to SMEs, taking into account the tax changes announced as part of Budget 2025; and if he will make a statement on the matter. [40988/24]

Jack Chambers (Dublin West, Fianna Fail)
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I am advised by Revenue that the savings associated with the removal of the existing employer PRSI exemption, that may apply to share-based remuneration operated by employers, is estimated to be in the region of €310 million for all employers. This latest estimate, which is a maximum cost, is based on 2023 data, being the most recent year in respect of which Revenue has full data. The estimate is calculated with reference to an employer PRSI rate of 11.05% for 2023. As the rate of employer PRSI depends on an employee’s weekly earnings, it is not possible to provide an exact figure. It is worth noting that the 11.05% rate of employer PRSI has increased to 11.15%, effective from 1 October 2024. The rate will further increase to 11.25%, effective from 1 October 2025.

Whilst a complete breakdown of this €310 million figure by employer size is not available, a breakdown by employer size for share based remuneration that has been reported through payroll is available. The total PRSI exemption in respect of this cohort is estimated to be €237 million, of which approximately €198 million relates to large enterprises and €39 million relates to micro, small and medium enterprises.

With regards to estimated savings associated with restricting the employer PRSI exemption on a first and full year basis, as it is not possible to predict the uptake on share-based remuneration schemes, an estimation cannot be provided.

As announced in my Budget day speech, an independent review of the taxation of share based remuneration, incorporating the responses received to a public consultation, has been published and its recommendations will be considered in due course.