Substantial savings in PRSI for employers who create jobs and take on eligible employees, including JobBridge interns, after 1 January 2012.
The Minister for Social Protection, Joan Burton T.D. today (Wednesday, 23rd May) reminded employers that they may avail of the Employer Job PRSI Incentive Scheme until the end of 2012.
Minister Burton said: “Under the scheme, if an employer takes on an eligible worker who has been unemployed for 6 months or more, they are exempt from paying employers PRSI for 18 months. The job must be new and additional, be for at least 30 hours a week and last for at least six months.
“It is a great incentive for businesses who currently host JobBridge interns to employ them on completion of their internship and given that many of the JobBridge internships are now close to completion, it is an opportune time for employers to consider this option. Almost 900 interns have progressed directly into employment and, in many cases, the companies employing these people are availing of the PRSI Incentive Scheme.
“I would really like host organisations to benefit from this opportunity and the Department will be reminding them of the support and savings available when they are closing off the internship. We have provided a new link on the JobBridge website www.jobbridge.ie which provides full details of the scheme.”
Minister Burton continued: “The amount of PRSI savings to an employer depends on the PRSI band which applies to the specific employee but, for someone being paid €350 per week, an employer would save €1,160 per year.
“While the scheme does involve a cost in terms of social insurance forgone, it should be borne in mind that by supporting the creation of employment the scheme benefits the Exchequer in terms of reduced social welfare and increased tax revenues (paid by employees) while providing employers with an incentive to employ people which in turn provides stimulus to the economy. I would be very happy to see even more businesses availing of the scheme.”
In conclusion Minister Burton noted: “Department of Social Protection customers supported in self-employment via the Back to Work Enterprise Allowance or the Short Term Enterprise Allowance schemes can also avail of this incentive where they find themselves in a position to expand their businesses.
“Also, 3,500 people are graduating this month from the first phase of Springboard 2011. Many of these graduates have been supported under the Part Time Education Option (PTEO) in my Department which allows them to engage in part-time studies and retain their Social Welfare payments while an entitlement exists. Not only do they have up to date qualifications relevant to sectors such as ICT, pharmaceuticals, medical devices and financial services, but also a wealth of experience and workforce skills. As many of these graduates will qualify as eligible employees under the PRSI exemption scheme, employers will be able to avail of the PRSI exemption scheme if they take on an eligible Springboard graduate.”