98. Deputy William Aird asked the Minister for Social Protection whether consideration has been given to introducing a zero rate of employer PRSI for employees under 25 years of age, similar to schemes previously introduced in the United Kingdom for young workers and apprentices; and if he will outline any assessment undertaken by his Department of the potential impact such a measure could have on youth employment and labour market participation. [67452/26]

In general, the issue of targeted supports for businesses is a matter for the Minister for Enterprise, Tourism and Employment. However, the following is the position with regards to employer PRSI.

The main finding of the latest Actuarial Review of the Social Insurance Fund was that the Fund will experience significant long term sustainability challenges. It is in this regard that the previous Government agreed to a series of annual incremental increases in all PRSI rates, including employer PRSI, up to and including 2028. A further evaluation of the position of the Fund will be held after the completion of the next Actuarial Review next year.

It is in this context that there are no proposals, nor has consideration has been given to introducing a zero rate of employer PRSI for employees under 25 years of age. However, in recognition of the pressures faced by businesses, the Government agreed, in Budget 2026, to increase the employer PRSI threshold from €527 to €552 per week, effective from 1 January 2026. This will ensure that employers with full time employees on the national minimum wage or employees with earnings under €552 per week will attract the lower employer PRSI rate of 9%.

Any further changes to the PRSI employer rates or threshold would have to be considered in a budgetary context, taking account of the economic circumstances and with a view to the sustainability of the Social Insurance Fund.

I trust this clarifies the matter.