Social Welfare Act 2010

Abolition of employee PRSI relief on employee pension contributions.

12.— (1) The Principal Act is amended—

(a) in section 2(1) by substituting the following definition for the definition of “reckonable emoluments”:

“ ‘reckonable emoluments’, in relation to a self-employed contributor, means emoluments (other than reckonable earnings and any other emoluments that may be prescribed) to which Chapter 4 of Part 42 of the Act of 1997 applies;”,

(b) in section 13(2)—

(i) in paragraph (b) by substituting “paragraph (ba)” for “paragraph (c)”, and

(ii) by inserting the following paragraph after paragraph (b):

“(ba) Where in any contribution week—

(i) a payment of more than €356 is made to or for the benefit of an employed contributor in respect of reckonable earnings of that employed contributor, and

(ii) other than in a case to which subsection (8) applies, the employed contributor’s employer is liable, under paragraph (d)(i), to pay a contribution at the rate of 7.8 per cent,

then the reckonable earnings of that employed contributor shall be calculated as if, in that week, they amount to €356 and there shall be payable a contribution by that employed contributor at the rate of €9.16, in that week, (or the equivalent thereof in the case of an employed contributor remunerated otherwise than on a weekly basis) in respect of each employment to which that payment relates.”,

(c) by deleting section 38, and

(d) in section 38A(1) (inserted by section 8 of the Act of 2009) by substituting “section 34 or 37” for “section 34, 37 or 38”.

(2) This section comes into operation on 1 January 2011.