Members Memo
Employer Job (PRSI) Incentive Scheme

30th June 2010

Dear Member,

The Employer Job (PRSI) Incentive Scheme is provided by the Department of Social Protection with the aim of supporting job creation.  The scheme was announced in Budget 2010 last January but was officially launched, Sunday, 20th June by An Taoiseach Brian Cowen TD.

Under this new scheme, where an employer creates a new job and employs a person who has been unemployed for 6 months or more, or on a Work Placement Programme administered by FAS, the employer will be fully exempted from the liability to pay PRSI for the first year of that employment.

The main criteria of the scheme are as follows:

• The employee concerned must have been on the Live-Register for a continuous period of at least 6 months, (ie in receipt of Jobseeker’s Benefit, Jobseeker’s Allowance, One-Parent Family Payment or Disability Allowance) or
• On a Work Placement Programme administered by FAS for at least 3 months.
• The job must be for at least 30 hours per week and must be new and additional.  I.e. a new position must be created.  Employees who are covering leave, such as maternity leave etc will not be eligible under the scheme.
• Employers will be required to furnish an up-to-date Tax Clearance Certificate.
• Employers will be limited to a maximum participation rate of 5% of their existing workforce of for smaller companies a maximum of 5 new jobs.
• The job must last for 6 months for more.   

Any job created in 2010 which meets the above criteria will be able to benefit from the scheme.  However, it is important to note that the scheme is structured in such a way that a job created prior to the launch (20th June 2010) can participate for 12 months from the date you are approved for the scheme.  Qualifying jobs created after the launch will benefit from the date the employment commences.

For more information and to view the Department of Social Protection website please click HERE

To download a copy of the Application Form please click HERE

If you have any queries on the Employer Job (PRSI) Incentive Scheme please do not hesitate to contact me.

Kind regards,

Nuala McLoughlin

Advisor – Employment Matters

This memo is not intended as a statement of the law on any topic and any member with a particular query should obtain detailed professional advice.