CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Irish Tax Experts Warn Against PRSI Hike

Irish Tax Experts Warn Against PRSI Hike

by Jason Gorringe,, London

01 October 2013

The Irish Government has been urged not to implement a proposed 1.5 percent rise in the pay-related-social-insurance (PRSI) rate for the self-employed.

The increase was recommended in a recent report by the Advisory Group on Tax and Social Welfare, as a means of funding changes to the benefits system. The Irish Tax Institute has now warned that, were the Government to adopt the plan as part of its 2014 Budget, the marginal tax rate for the self-employed could reach a "staggering" 56.5 percent.

Around 300,000 individuals are classified as self-employed in Ireland. The Institute's Chief Executive, Mark Redmond, said that there is already severe disparity in the levels of PRSI paid by employees and the self-employed. "A self-employed single person on an income of EUR15,000 (USD20,262) pays almost six times as much tax and PRSI as an employee on the same income," he explained.

Employer PRSI is also causing problems for those self-employed workers who have staff in their business. Redmond believes that it "remains a serious impediment to job creation and a real burden on the cost of employment." He is concerned about the impact of an intended hike in employer PRSI on lower paid jobs from 4.25 percent to 8.5 percent, due to enter into force from January, 2014. This will make recruiting additional workers difficult and "giving employers a pay increase [will] become an even greater burden, with no cap whatsoever on Employer PRSI."

TAGS: individuals | tax | business | Ireland | insurance | employees | tax rates | revenue statistics | tax reform | trade association | trade | individual income tax | Welfare | Tax

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »