ICTU chief fears PRSI increase

"Serious concern" at speculation that pay related social insurance (PRSI) costs will be increased in today's Budget has been …

"Serious concern" at speculation that pay related social insurance (PRSI) costs will be increased in today's Budget has been expressed by the general secretary of the Irish Congress of Trade Unions, Mr David Begg.

He said the social insurance scheme had already taken a "double whammy", through benefit cuts contained in the recent Estimates and the fact that benefit-in-kind payments would be subject to PRSI from January.

An increase in the PRSI ceiling, from the cut-off point of €40,400, would impose higher payments on workers at a time when benefits were being reduced, he said.

Mr Begg said the Government was committed under Sustaining Progress to discussing the social insurance scheme with unions and employers.

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However, there had been no consultation with the ICTU on the reduced entitlements of workers to unemployment, disability and health and safety benefits contained in the Estimates.

For example, the underlying number of paid contributions required under the three schemes had been raised from 39 to 52.

Also, a person with fewer than five years of PRSI contributions had had their maximum duration of unemployment benefit reduced from 65 weeks to 52.

"These changes will make it more difficult for workers to qualify for entitlements for which they have paid contributions, and will impact disproportionately on women who enter and leave the workforce to care for children and others," he said.

Mr Begg called for an end to "ad hoc changes" in the social insurance scheme and the establishment of a review process with the ICTU.

Chris Dooley

Chris Dooley

Chris Dooley is Foreign Editor of The Irish Times