Sinn Féin propose PRSI hike to cover cost of earlier retirement age

Mary Lou McDonald said it would cost €127m to restore pension rights to 65 year olds and Sinn Féin would increase employers' PRSI contributions to pay for this 

Sinn Fein leader Mary Lou McDonald.

Sinn Féin leader Mary Lou McDonald says her party would increase employer PRSI by 4%, but would not increase PRSI for self-employed people.

The party is holding its think-in on Monday in Dublin.

Among the other topics for discussion is the restoration of the pension age, which Ms McDonald said is "essential" for Irish workers.

“By the time you reach the age of 65, you've paid your dues and you have to have the option to retire with your pension, but equally so, there has to be the option to continue working,” she said.

“So we don't believe in this compulsory retirement for workers.” 

She said it would cost €127m to restore pension rights to 65 year olds and that increasing employers' PRSI contributions over several years could pay for this. 

Ms McDonald noted bodies, including IBEC, have conceded the point that employers' PSRI in Ireland is very low in global and European terms.

“Our proposal, over the course of a number of budgets, is to bring an employer's PRSI up by about four percentage points,” Ms McDonald added.

“That still means that we are well below the European average, and we're in or about the global average."

Sinn Féin are not proposing to raise PSRI for the self employed, she added.

“There was a time where our primary concern was that self employed people didn't have the kind of social security nets that the rest of us enjoyed, and so that has been rectified that's a good thing. But that's not on our agenda, at this point in time.”