Extension of the PRSI Incentive Scheme to support job creation

On 23 February 2012, the Minister for Social Protection announced that the Employer Job PRSI Incentive scheme, is now being extended into 2012.

 Under the scheme, if an employer takes on an additional member of staff in 2012 , who had been unemployed for 6 months or more, s/he would be exempted from paying employers’ PRSI for 18 months. The job must be new and additional, be for at least 30 hours a week and last for at least six months.

The relief will also be extended to 18 months for any business set up under the Back to Work Enterprise Allowance or Short-term Enterprise Allowance that takes on additional members of staff. Eligibility criteria for the scheme has been amended to allow time spent on the Work Placement Programme and JobBridge count as the qualifying period for the scheme .

The scheme will also
• allow persons on eligible payments undertake short SOLAS-funded courses without impacting on their eligibility.
• allow time spent in casual employment count towards the qualifying period for the scheme, where a person is progressing to a new full-time job offered by a different employer .
• allow linking periods for illness payments provided on qualifying payment immediately prior to commencement of employment.
The purpose of the scheme is to support job creation and counter the drift of people into long-term unemployment and welfare dependency. Further information is available on http://www.welfare.ie/ and the SW128 booklet.

To qualify for the Employer Job (PRSI) Incentive Scheme both the job you create and the person you employ must meet certain criteria. While you are waiting to be approved for the scheme, you should operate the standard employee and employer PRSI.

The person you employ must have been on the FÁS Work Placement Programme for at least 3 months, on the JobBridge programme for at least 6 months or have been getting one of the following social welfare payments for a period of at least 6 months (156 days):
• Jobseeker’s Benefit
• Jobseeker’s Allowance
• One-Parent Family Payment
• Disability Allowance

The job must:
• Be a new and additional post/job – employers are not allowed to substitute existing employees to avail of the scheme
• Be for at least 30 hours per week
• Last for at least 6 months. If the employment ends within 6 months of getting the exemption, you may be liable to pay the employer’s PRSI contributions for that employee.

Maximum participation rate
You can only get an exemption from employer’s PRSI for a limited number of employees. This limit is 5% of your existing workforce or, for smaller companies, a maximum of 5 new jobs.

How to apply
If you have a new employee and are eligible for the scheme, you should fill in a PRSI20 form which is available on http://www.welfare.ie/
Send the completed PRSI 20 form with a current tax clearance certificate to the Department of Social Protection at ;
Employer Job (PRSI) Incentive scheme
Department of Social Protection
Shannon Lodge
Co Leitrim
Locall: 1890 927 999