Information
The Employer Job (PRSI) Incentive Scheme exempts employers from liability to
pay their share of PRSI for certain employees for 12 months.
The scheme is open to employers who create new and additional jobs in 2010
and 2011. If you created a new job in 2010, before the scheme was launched in
June 2010, you may still qualify for an exemption from employer’s PRSI.
If you qualify for the scheme you will be exempt from employer's PRSI for 12
months from the date you were approved for the scheme. The purpose of the
scheme is to support job creation and counter the drift of people into
long-term unemployment and welfare dependency.
In May 2011 it was announced that the lower rate of employer PRSI
will be halved for all jobs that pay up to €356 per week from 1 July
2011. Legislation is required for this change. The existing Employer
Job (PRSI) Incentive Scheme will remain in place until the end of 2011.
Rules
To qualify for the Employer Job (PRSI) Incentive Scheme both the job you
create and the person you employ must meet certain criteria. While you are
waiting to be approved for the scheme, you should operate the standard employee
and employer PRSI.
The person you employ must have been on the FÁS Work
Placement Programme for at least 3 months or have been getting one of the
following social welfare payments for a continuous period of at least 6
months:
The job must:
- Be created in 2010 or 2011
- Be a new and additional post/job – employers are not allowed to
substitute existing employees to avail of the scheme
- Be for at least 30 hours per week
- Last for at least 6 months. If the employment ends within 6 months of
getting the exemption, you may be liable to pay the employer’s PRSI
contributions for that employee.
Maximum participation rate
You can only get an exemption from employer’s PRSI for a limited number of
employees. This limit is 5% of your existing workforce or, for smaller
companies, a maximum of 5 new jobs.
How to apply
If you have a new employee and are eligible for the scheme, you should fill
in a PRSI 20 form
(pdf).
Send the PRSI 20 form with a current tax clearance certificate to the
Department of Social Protection – see ‘Where to apply’ below.
Where to apply
Your application for the Employer Job (PRSI) Incentive Scheme should be sent
to:
Employer Job (PRSI) Incentive Scheme
Department of Social Protection
Floor 2
Shannon Lodge
Carrick-on-Shannon
Leitrim
Ireland
Locall:
1890 927 999
Homepage:
http://www.welfare.ie