New Incentive for Employers

PRSI Exemptions for taking on new employees

A new €36m employment incentive scheme was announced by the Government on June 20.  The scheme will give employers PRSI exemptions for taking on new employees.  The measure is specifically targeted at those who have been out of the work force for six months and more.

Any employer creating a new job for a person who has been unemployed for six months will save in the region of €3,000 over a year, because of reduced employer contributions for pay-related social insurance.

The concession will be back dated to January 1 2010. 

There are a number of rules underlying the new scheme.  The job must be full-time and an additional, not a replacment job.  The scheme is limited to an existing 5% of the workforce or 5 new jobs for smaller companies.  The new job must last at least six months.