Unite warns Government not to cut Employer’s PRSI in return for Minimum Wage increase

unite white out of redRobbing Peter to subsidise Peter’s boss is not the solution to low pay says Jimmy Kelly

July 22nd: Following publication of the Low Pay Commission’s report and Government statements to the effect that implementation of the proposed 50 cent increase would be addressed in the Budget, trade union Unite today  warned the Government not to accede to employer demands that PRSI be reduced to compensate for what the union’s Ireland Secretary Jimmy Kelly termed a ‘minimalist’ increase in the wage floor.

“Irish employers already pay the lowest social insurance in the EU, and Unite has consistently argued that Employer’s PRSI should be raised to fund the social wage – the kind of social insurance-based services that workers in the rest of Europe take for granted”, Jimmy Kelly said.

“Arguing that Employer’s PRSI should be reduced to fund this minimalist increase in the Minimum Wage is akin to robbing Peter to subsidise his low-paying boss.

“We already subsidise low-pay employers through Family Income Supplement, part-time unemployment payments and lost tax revenue. Piling on another subsidy is not the way to address the scourge of low pay”, Jimmy Kelly concluded.

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