‘Ringfence corporate tax rather than hike PRSI to boost third-level funds’

Employers and unions agree that ringfencing a portion of corporate tax or business profits could be a better way to bolster higher education funding than a government proposal to increase employers’ PRSI.

The increased contribution has been suggested by Education Minister Richard Bruton and Public Expenditure Minister Paschal Donohoe through a proposed increase in the National Training Fund (NTF) levy.

A portion of employers’ PRSI, currently 0.7% of each employees’ pay, is currently ringfenced for the NTF. But the ministers claim that raising this over three years to 1% could bring in close to €200m more a year for higher and further education.