The PRSI changes announced by the Minister for Finance in the Supplementary Budget are included in the Social Welfare Bill 2009.
The key aspect to the Bill is the increase in the rate of the Health Levy.
- The Health Levy rates have increased from 2% to 4% and from 2.5% to 5%
- The threshold for payment of the higher rate of the Health Levy has been lowered from €100,100 to €75,036
While a “composite blending” table is included; there is a specific provision to ensure that the Health Levy charged in the period before 1 May is at the older rates. This position is in sharp contrast to the changes in the Income Levy which are retrospective.
Other PRSI changes include the increase in the employee’s annual earnings ceiling from €52,000 to €75,036.