THE COST of employing someone who has been on the Live Register for six months or more will fall by €3,000 in the first year under the Employer Job (PRSI) Incentive Scheme, which was announced in the Budget earlier this month.

Outlining further details of the scheme yesterday, Minister for Social and Family Affairs Mary Hanafin said it will “make it significantly easier for employers to create jobs and help get Ireland back to work”.

Under the scheme, employers who create a new job and fill it with someone who has been unemployed for six months or more will be exempt from making employer PRSI contributions for one year.

Minister for Finance Brian Lenihan said during his Budget speech that €36 million will be allocated to the scheme.

“In these challenging times, we are very conscious that decisions to take on staff are difficult, even where sound business opportunities exist,” said Ms Hanafin.

“I hope that these savings to employers will tip the balance in favour of job creation and play a significant role in re-establishing people in the workforce.”

Although the scheme will not be formally announced until early in the new year, Ms Hanafin clarified it will apply to any new job created in 2010.

Jobs created before it is formally launched will get exemption from the launch date.

The scheme is targeting the long-term unemployed and will also be available to those on “certain linked training courses for six months or more”.

Jobs covered under the scheme must be newly created posts and in addition to current roles in the firm. Employers will not be able to replace existing staff to avail of the scheme.

Under the terms of the scheme the new job must last for a minimum of six months. If it does not, the employer will be required to repay the PRSI-exempt amounts that they received.

Employers who wish to avail of the scheme will also have to provide a current tax clearance certificate from the Revenue Commissioners.

Participation in the scheme will be capped at 5 per cent of the existing workforce.