The Government has announced the Employer Job (PRSI) Incentive Scheme which offers the incentive of a PRSI break of twelve months to employers who create new jobs.

However, the Employer Job (PRSI) Incentive Scheme will be applicable to the employer only if a number of conditions have been met. The main ones are as follows:

·         The employee must come from a position of unemployment and must have been on the Live Register for at least six months prior to employment. The purpose of this condition is to reduce the number of people who have been unemployed for six months or more where there is increased danger of long-term unemployment and welfare dependence;

·         The job must be new, additional and fulltime (at least 30 hours a week) – and must not be at the expense of existing employees;

·         A current Tax Clearance Certificate must be produced by the employer;

·         The maximum rate at which employers can participate in the scheme is 5% of their existing workforce, or a maximum of five new jobs for smaller companies;

·         The employment period of the new job must be six months or longer. If this is not met, the break will be void and payment of PRSI for that employee will be due.

It is hard to predict if the take-up of this scheme will be significant enough to bring down the unemployment figures but for those who have created new jobs in 2010, there is good news. If, at any point in 2010, an employer has created a job which fulfils the conditions outlined above, the employer is eligible to apply for participation in the scheme. Should any applicant be approved, the PRSI break will be effective for twelve months from the approval date.

If you require any assistance on this scheme and whether your business can participate, please contact us.