In a bid to support small and medium enterprises (SMEs) and reduce operational costs, the Government has announced a range of measures, including a significant change to the Employers’ PRSI threshold. As of 1 October 2024, the threshold will rise from €441 to €496. This adjustment aims to alleviate the financial burden on employers, particularly those paying the national minimum wage.

Currently, employers must pay a higher PRSI rate of 11.05 percent for employees earning above €441 per week. With the new threshold, employers will only pay the lower rate of 8.8 percent for employees earning up to €496 per week. This change ensures that full-time employees on the national minimum wage do not push their employers into the higher PRSI bracket.

This measure is a strategic step towards fostering a more conducive environment for SMEs, which form the backbone of our economy. By reducing payroll taxes, the Government aims to empower these businesses to reinvest savings into growth, innovation, and job creation. It reflects a commitment to supporting the entrepreneurial spirit and sustaining the economic vitality of the SME sector.

Stay tuned for more updates on government policies and their impact on your business.