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Employer Job (PRSI) Incentive Scheme

The Employer Job (PRSI) Incentive Scheme, announced in the Budget, will be developed over the coming weeks and will be launched early in 2010.

The scheme will support job creation, and 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.

Any job created in 2010 which meets the scheme criteria will be able to benefit from the exemption. If you created a new job in 2010, before the scheme was launched in June 2010, you may still qualify for an exemption of employer’s PRSI for this job. If you qualify it will be for 12 months from the date you are approved for the scheme.

The provisional scheme criteria are as follows:

• The employee concerned must have been on the Live-Register (Unemployed) for at least 6 months;
• The job must be full-time and must be new and additional – employers will not be allowed to substitute existing employees to avail of the scheme;
• The employer will be required to furnish 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 5 new jobs;

• The job must last for 6 months or more. If it does not the PRSI exempt amounts will have to be repaid by the employer.