PRSI INCENTIVE SCHEME

The aim of the Employees Job (PRSI) Incentive Scheme is to support job creation by exempting employers from liability to pay their share of PRSI contributions. The current rates of employer’s PRSI are 8.5% or 10.75% of the employee’s gross pay.

The highlights of the scheme are as follows:

• Scheme commenced June 2010.
• Any job created in 2010 which meets the scheme criteria will be able to benefit from the exemption.
• Qualifying jobs created in 2010, before or after the scheme came into operation, will benefit from the exemption for 12 months from the date of approval.

In order to avail of the exemption the following criteria must be met:

• The employee must have been in receipt of certain social welfare payments for at least 6 months, or in a FAS placement programme for 3 months.
• The job must be full time (30 hours or more per week) and must be new and additional – employers will not be allowed to substitute existing employees to avail of the scheme.
• Prior approval must be obtained and this can be done by completing form PRSI 20 and sending it together with a current Tax Clearance Certificate to the Department of Social Protection.
• Employers will be limited to a maximum participation rate of 5% of their existing workforce or, for smaller companies, a maximum of 5 new jobs.

The job must last for 6 months or more, otherwise the employer may be liable to pay the employer’s PRSI contributions.

Contact acasey@noonecasey.ie for further information on this scheme.