S.I. No. 145/1996 - Social Welfare (Employers' Pay-Related Social Insurance Exemption Scheme) Regulations, 1996

S.I. No. 145 of 1996.

SOCIAL WELFARE (EMPLOYERS' PAY-RELATED SOCIAL INSURANCE EXEMPTION SCHEME) REGULATIONS, 1996

The Minister for Social Welfare in exercise of the powers conferred on him by sections 4 (as amended by section 37 of the Social Welfare Act, 1996 (No. 7 of 1996)) and 10(10) (inserted by section 10 of the Social Welfare Act, 1995 (No. 3 of 1995)) of the Social Welfare (Consolidation) Act, 1993 (No. 27 of 1993), hereby makes the following Regulations:

1 Citation.

1.

1. These Regulations may be cited as the Social Welfare (Employers' Pay-Related Social Insurance Exemption Scheme) Regulations, 1996.

2 Definitions.

2.

2. In these Regulations—

"additional employee" means an employee who

• (a) is of or over the age of 23 years and immediately before the date of commencement of employment was—

• (i) in receipt of unemployment benefit or unemployment assistance for 78 days in a continuous period of interruption of employment within the meaning of section 42(4) (c) of the Principal Act,

• (ii) in receipt of lone parent's allowance, or

• (iii) participating in a recognised course of training or an employment scheme administered, or approved of, by An Fóras Aiseanna Saothair, C.E.R.T., Teagasc or any other training or education authority as may be approved by the Minister,

• (b) is under the age of 23 years and who on commencing employment, becomes for the first time an employed contributor by virtue of section 9(1) (a) of the Principal Act or who would otherwise become for the first time an employed contributor under the said section but for the fact that the employee had been employed previously in an employment which, in the opinion of a deciding officer or an appeals officer, constitutes employment of a temporary nature, or

• (c) immediately before the date of commencement of employment was registered with the National Rehabilitation Board;

"the Principal Act" means the Social Welfare (Consolidation) Act, 1993 .

3 PRSI exemption.

3.

3. (1) An employer who, on or after the 6th day of April, 1996, employs an additional employee under and by virtue of a scheme administered by the Department of Social Welfare and known as the Employers' Pay-Related Social Insurance Exemption Scheme, where such employment constitutes an increase in that employer's employed workforce above that applying in the 3 month period immediately prior to the date of commencement of the employment of that additional employee, shall, for a period of two years from the said date in respect of the said additional employee, be exempt from the liability to pay the contribution specified in section 10(1) (d) (as amended by section 8 of the Social Welfare Act, 1996 ) of the Principal Act.

• (2) Sub-article (1) shall not apply for any period during which an employer is paid a subsidy under a scheme administered by An Fóras Aiseanna Saothair and known as Jobstart in respect of an additional employee.

GIVEN under the Official Seal of the Minister for Social Welfare

this 17th day of May, 1996.

PROINSIAS DE ROSSA

Minister for Social Welfare.

The Minister for Finance hereby consents to the making of the foregoing Regulations.

GIVEN under the Official Seal of the Minister for Finance this

17th day of May, 1996.

RUAIRI QUINN

Minister for Finance.

EXPLANATORY NOTE

These Regulations provide for an ongoing Employers' PRSI Exemption Scheme. Employers who after 6 April, 1996 take on additional employees who constitute a net increase in their workforce above that applying in the previous 3 months are exempted from having to pay the employer's portion of the PRSI contribution in respect of the employee for a period of two years.

An additional employee is defined as a person who is aged 23 or over and who, immediately prior to the date of commencement of employment, has been in receipt of Unemployment Benefit or Unemployment Assistance for at least 78 days, in receipt of Lone Parent's Allowance, participating in a recognised course of training, education or an employment scheme or registered with the National Rehabilitation Board. In addition the exemption also applies to additional employees who are under age 23 and who are first time employees. In determining first-time employment any earlier periods of employment which in the opinion of a deciding officer or an appeals officer are considered to be employment of a temporary nature, will be disregarded.

The Regulations also provide that the exemption will not apply while the employer is being paid a Jobstart subsidy in respect of an additional employee.