Business in Ireland

Business in Ireland

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  • Helena Deane
    Helena Deane    Group moderator
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    The Employer Job (PRSI) Incentive Scheme
    Description:
    A scheme to exempt employers from liability to pay their share of PRSI contributions.
    The Employer Job (PRSI) Incentive Scheme is provided by the Department of Social and Family Affairs with the aim of supporting job creation. The objective of the programme is to counter the drift of people into long-term unemployment and welfare dependency by exempting employers from liability to pay their share of PRSI contributions – 8.5% or 10.75% of gross pay. The scheme, announced in the Budget, will be developed over the coming weeks and will be launched early in 2010

    Key Criteria:
    Any job created in 2010 which meets the criteria will be able to benefit. Qualifying jobs created in 2010 but before the scheme launches will benefit for 12 months from the scheme launch date. Qualifying jobs created after launch will benefit for 12 months from the date the employment commences.

    The provisional scheme criteria are as follows:
    The employee must have been on the Live-Register (Unemployed) for at least six months.
    The job must be full-time, new and additional – employers will not be allowed to substitute existing employees to benefit.
    The employer must provide an up-to-date Tax Clearance Certificate.
    Employers will be limited to a maximum participation rate of 5% of their existing workforce or, for smaller companies, a maximum of five new jobs.
    The job must last for six months or more. If not, the employer must replay the PRSI exempt amounts.

    Application Procedure:
    For further information on how to obtain this grant locally, please contact the following:
    Enquiries
    Department of Social and Family Affairs
    Áras Mhic Dhiarmada
    Store Street
    Dublin 1
    Tel: 1890 66 22 44
  • Helena Deane
    Helena Deane    Group moderator
    The company name is only visible to registered members.
    Re: The Employer Job (PRSI) Incentive Scheme (Update)
    Éamon Ó Cuív (Minister, Department of Social and Family Affairs; Galway West, Fianna Fail)

    The employer job, PRSI, incentive scheme will be commenced in June and will be administered by the Department of Social Protection. Regulation or secondary legislation pertaining to the scheme is in the final stages of preparation, as are details of scheme administration.

    The scheme will run for the calendar year 2010 only. However, any qualifying employment created in 2010 will be eligible for the scheme, which will be structured so that employment created prior to the launch can participate for 12 months forward from the time of launch and employment created later in the year will participate for 12 months to the corresponding date in 2011.

    To qualify for the scheme the employment will have to constitute an increase in the employer’s employed workforce above that applying in the three month period immediately prior to the date of commencement of the additional employee, who will have to have been on the live register for six months or more. In addition, participation in the scheme will be limited to 5% of the employer’s existing workforce or five posts, whichever is the greater. The employer will also be required to declare when applying that the employment will be for, on average, 35 hours or more per week. These conditions are designed to prevent displacement from existing full time and part-time positions.

    The scheme has not been launched to date as the regulation and administrative arrangements are being put in place. These arrangements are now close to completion and I expect to be launching the scheme in the coming weeks.

    In this context it is important to note that jobs created prior to the launch will still be able to benefit from the scheme. For example, in the case of a qualifying employment created prior to the launch of the scheme standard employee and employer PRSI will be paid but, following approval for the scheme, the employer will benefit from a PRSI exemption for 12 months from their date of approval. Rebates of PRSI will not be a feature of the scheme.

    (Kildare Street)