The Association has once again made our views known to the Minister for Social Protection Heather Humphreys on the suggested retention of the employer’s contribution if an employee elects to avail of the “opt-out” option and ceases to continue paying into the “pot”.
The Scheme, designed to collect equal contributions from employer and employees, starting at 1.5% (with a 0.5% State contribution) and rising by 1.5% through 3.0%, 4.5% and finally (in 2034) to 6% (State contribution 2%), will increase very significantly the cost of employing staff over 23 years of age and earning in excess of €20,000p.a. It had then been suggested that the Scheme will cost the tax payer €3billion in the first year which would indicate a cost of €9billion to those employers with qualifying workers.