Budget 2013 Social Protection: Abolition of employee’s PRSI allowance will hit 1.1m workers

More than 1.1m people will be hit with extra charges through the abolition of the employee’s PRSI weekly free allowance, and will see workers, many low-paid, having to pay at least €264 each per year.

This is one of the biggest revenue earners for the Government in the budget. Workers’ PRSI free allowance of €127 will be dropped and instead 4% in PRSI will apply on that amount. The €5 extra weekly charge will affect more than 1m people

Crucially, it will apply only to those earning over €352 a per week and therefore will hit those earning just over €18,000 a year and over.