Employer PRSI Changes to Support Small Businesses and Protect Local Jobs

Deputy John Paul O’Shea has welcomed changes to Employer PRSI, saying the measure will provide welcome support to small and medium-sized businesses across Cork North West as they manage rising employment costs and work to sustain local jobs.

The changes, included in the Social Welfare Bill, will increase the weekly earnings threshold for the lower rate of Employer PRSI from €552 to €600.

Deputy O’Shea said the adjustment was an important step in helping employers meet the cost of increases in the National Minimum Wage while continuing to invest in their workforce.

“Businesses across Cork North West, particularly our small family-run businesses and local employers, are facing a range of cost pressures. It is important that Government recognises these challenges and puts practical measures in place to support them.

“The National Minimum Wage is increasing by 5.6% in January to €14.94 per hour. While this is a positive development for workers and their families, we must also ensure that employers are supported in meeting the additional costs involved.

“By increasing the Employer PRSI threshold from €552 to €600 per week, businesses will be able to retain the lower 9.15% rate for more of their employees’ weekly earnings, rather than moving to the higher 11.40% rate. This will help reduce the additional PRSI burden on employers.

“For a small business considering taking on another employee, increasing someone’s hours or retaining existing staff, these savings can make a real difference.

“Small and medium-sized businesses are the backbone of our local economy. They provide employment in towns and villages right across Cork North West, and supporting their viability is essential to protecting jobs and maintaining vibrant local communities.

“Fine Gael recognises that supporting workers and supporting employers must go hand in hand. These changes are another practical measure to help businesses remain competitive while ensuring workers benefit from improved wages.”

Deputy O’Shea also welcomed the Government’s wider commitment to supporting business sustainability, noting the importance of balancing wage improvements with the need to maintain a competitive environment for employers.

He said Government must continue to engage with local businesses and ensure that the cost of doing business remains a central consideration in future policy decisions.