Full-time workers will face a hike in their PRSI contributions every year for the next five years.
An increase of 0.7% is planned under the Social Welfare Bill, due to the introduction of Pay Related Jobseekers Benefit.
It means if a worker loses their job and signs on the dole, their benefits will be supplemented by increased social welfare payments.
Full-time workers on minimum wage will have to pay an additional €178.55 in contribution each year, while a worker on the average wage will see an increase of €335.54 extra.
People Before Profit TD Paul Murphy said the Government is acting like Robin Hood in reverse.
“The problem is, the Government is doing it in such a way to bring in an additional tax on ordinary workers,” he said.
“They’re increasing employee PRSI over a five-year-period from 4% to 4.7%.
“The Government is kind of acting like Robin Hood in reverse here - they’re taking from the ordinary worker.”
Deputy Murphy suggested that employers should be taxed instead to pay for the increase in the dole.
“The Government recently announced a change in the threshold for employers’ PRSI - which amounted to a giveaway to employers of about €60 million a year,” he said.
“That’s more than enough money to cover the yearly cost of introducing this measure.”
Main image: Paul Murphy. Photograph: Leah Farrell / RollingNews.ie
