Monday 26 September 2016

Kenny to hit lowest-paid for PRSI tax

Kevin Doyle, Niall O'Connor and Cormac McQuinn

Published 03/02/2016 | 02:30

Enda Kenny. Photo: Niall Carson/PA Wire
Enda Kenny. Photo: Niall Carson/PA Wire

Taoiseach Enda Kenny will hit low-paid workers making as little as €13,000 for PRSI.

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Low-income workers will see the much-hated USC disappear from their payslip under the party's pledges.

But the benefit will be partly eroded by Pay-Related Social Insurance (PRSI), the Irish Independent understands.

The changes to the PRSI system will be off-set by the restoration of benefits such as dental treatment and the extension of maternity leave.

Currently workers pay PRSI on income above €18,000, while the USC kicks in at €13,000.

The PRSI's entry point will now be reduced to just €13,000.

Fine Gael's 'everybody pays something' approach will be set out in the party's long-term economic plan to be announced tomorrow.

Mr Kenny's party will seek to put the focus firmly on the economy in the opening salvos of the General Election campaign.

A source said: "People will be paying a lot less in PRSI than they are in USC."

Fine Gael and the Labour Party are fighting accusations of "a black hole" in the budget estimates being used for their election promises.

Both parties believe there will be billions of euro more available in the next five years than estimated by Fianna Fáil, Sinn Féin and the Fiscal Advisory Council.

The General Election will take place on Friday, February 26. Mr Kenny will finally call the election today, having confirmed his decision to dissolve the 31st Dáil.

After visiting President Michael D Higgins in Áras an Uachtaráin to dissolve the Dáil, Mr Kenny will hold a joint press conference with Tánaiste Joan Burton.

The Coalition leaders will emphasise how their administration lasted the full five years.

Fine Gael ministers last night pledged to introduce strict rules surrounding patients lying on trolleys, a new package for the elderly, and radical new laws in the area of cyber-crime at the final meeting of their TDs and Senators before the election.

Seven ministers spoke on the party's manifesto as Mr Kenny told them to "go out on the doorsteps with confidence".

Irish Independent

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