Employers’ PRSI threshold to increase from 1 October 2024

Last week, the Government announced a range of measures intended to support small and medium enterprises (SMEs) and to help reduce costs for those businesses. Arguably the most widely discussed measure was the announcement by the Minister for Social Protection, Heather Humphreys TD that the Employers' PRSI threshold will increase from €441 to €496 with effect from 1 October 2024. This will ensure that employers with employees working full time on the national minimum wage will not be required to pay the higher rate of employers' PRSI of 11.05 percent and will instead pay the lower rate of 8.8 percent. 

The Minister for Enterprise, Trade and Employment, Peter Burke TD announced the enhancement of a range of business supports as well as the reopening the Increased Cost of Business (ICOB) Scheme until 29 May 2024. He also announced the introduction of a second payment of the ICOB grant for businesses in the retail and hospitality sectors. Further measures announced in the package include increasing the maximum amount available under the Energy Efficiency Grant Scheme to €10,000 and reducing the business contribution rate from 50 percent to 25 percent. 

Speaking following the announcement of the measures, the Minister for Finance, Michael McGrath TD said: 

"The package of measures being announced today is fair and balanced, and underlines the recognition across government of the crucial role SMEs play in our economy and in communities across Ireland. As Minister for Finance, I very much welcome the progress that has been made in relation to the Tax Debt Warehouse scheme. This has been a vital support to viable businesses during the dark days of the pandemic and in the period since. I would also like to thank the Revenue Commissioners for the positive and proactive approach they have taken to engaging with firms. The success of the scheme is a testament to the collaborative approach taken by a broad range of stakeholders and demonstrates the government’s commitment to supporting our business and enterprise sector."