PRSI paid per PAYE employee is 11.05% + 4%.
So an employee on 55k has 15.05% paid into PRSI fund every year, 8277 euro a year. Yes of course, that's between you and employer but that's what's going in.
PRSI and USC are around €4k a year. That's €20k over 5 years, still half the figure quoted.
The total payroll deductions in tax, USC and PRSI for a single person earning €55k is around 28%. The marginal rates are very high and a disincentive to working more but the overall deductions are low enough.
Someone on €26,500 only has €3,725 in deductions. That's 14%. That's very low.
Low and middle income earners are under taxed in this country. High earners are relatively over taxed. The Middle might be squeezed but the State isn't doing the squeezing, not directly anyway.
We also have a very generous welfare system, as can be seen by this thread. I'm not saying that we should change any of that but the facts are the facts, no matter how upset people are with the world around them.
That's an employers cost. It includes a Health Levy of 4 or 5% and a training Levy of 0.7%. That's not a contribution towards the employees social insurance. As far as I know it also covers redundancy payments where the employer doesn't have the means to pay them.PRSI paid per PAYE employee is 11.05% + 4%.
So an employee on 55k has 15.05% paid into PRSI fund every year, 8277 euro a year. Yes of course, that's between you and employer but that's what's going in.
Can you explain how someone can run their own business, sell it for a nice sum, retire and then get a redundancy payment from said company? I've never understood that.I am genuinely shocked that people who voluntarily walk out of their jobs get paid Jobseekers Allowance.
Can you explain how someone can run their own business, sell it for a nice sum, retire and then get a redundancy payment from said company? I've never understood that.
Because they were made redundant…Can you explain how someone can run their own business, sell it for a nice sum, retire and then get a redundancy payment from said company? I've never understood that.
That's an employers cost. It includes a Health Levy of 4 or 5% and a training Levy of 0.7%. That's not a contribution towards the employees social insurance. As far as I know it also covers redundancy payments where the employer doesn't have the means to pay them.
PRSI paid per PAYE employee is 11.05% + 4%.
So an employee on 55k has 15.05% paid into PRSI fund every year, 8277 euro a year. Yes of course, that's between you and employer but that's what's going in.
I don't think anyone believes otherwise. The issue is that some people seem to think that the social insurance fund just funds the pensions of those who pay into it.The social insurance fund in 2021 was funded by employers PRSI at 8.8B, employees at 3.2B, self-employed 0.7B.
The SIF that funds jobseekers benefit is funded in the main by employers PRSI. If someone prefers to believe otherwise - that's fine with me.
It's not in the spirit of the law...Because they were made redundant…
In terms of pensions it does only fund the COAP pensions of those who pay in.The issue is that some people seem to think that the social insurance fund just funds the pensions of those who pay into it.
In theory, but;In terms of pensions it does only fund the COAP pensions of those who pay in.
Exactly. The PRSI most people pay, along with the PRSI their employers pays, isn't enough to fund their contributory old age pension and all of the other things it is supposed to fund.Clearly the payout rate has little to do with what people pay in - which is the point you're making maybe?
I agree completely. It is ridiculous that it is not linked to what a person has paid in. It's also ridiculous that long term rates are the same as short term rates.If you want a JB where it makes sense to restrict it to people laid off, then make it a proper JB based on salary. Fix the JB first, then the eligibility for it.
E.G Germany it's up to 67% of salary for two years, up to a cap of 84,000 euro p.a. , i.e. our max JB is 4.5% of the max German one, we pay less social insurance here - but not 22 times less.