Thousands of jobs in financial services and the IT sector could be lost if the Government presses ahead with its proposal to lift the ceiling on PRSI, according to the Chartered Institute of Personnel and Development.
The institute's director, Mr Mike McDonnell, has called for the exemption of both sectors from the changes, which are expected to be proposed in the Finance Bill when it is placed before the Dail later today.
The institute represents most of the State's personnel and HRM professionals. According to Mr McDonnell about 102,000 people earn more than £36,000 (€45,743) a year and therefore stand to lose considerably by the tax changes. Employers' contributions will also rise.
"Informal research carried out by the CIPD has revealed that in the majority of IT companies at least 30 per cent of the workforce would earn above £36,000," Mr McDonnell said. The proportion of workers affected in financial services would be "up to 40 per cent".
"Many human resources managers have spoken to me of their fears that the move to abolish the PRSI ceiling is, in fact, going to turn out to be a tax on employment of highly skilled knowledge-based workers." It was "imperative to the future success of our economy that these sectors must be declared exempt from this additional tax".
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)