SIPTU, the state's largest trade union, has called on the Government to "stand firm" on its decision to levy full employers' PRSI rates on employees earning more than £36,000 (€45,700) a year. The union's general secretary Mr John McDonnell said yesterday it was an important move in maintaining income for the Social Insurance Fund. The changes would still leave employers' contributions among the lowest in the EU.

He was speaking after a meeting of the union's national executive, which endorsed the outcome of negotiations in the review of the Programme for Prosperity and Fairness. Mr McDonnell said the combination of tax cuts and pay increases would mean the average industrial wage would rise from just more than £17,000 a year at present to nearly £20,000 by next April.