torblednam
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What kind of nonsense is this - of course public sector employers pay employer's PRSI! They have to operate payroll in the same way as any other employer, private or public sector.
Interesting data on who gets paid what in the public service
- Thread starter Brendan Burgess
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jjm
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The future funding and guaranteed pensions for people in the private sector who through the paye system paid PRSI A1 and stealth levy along with income tax on there wages all of there working life is one of the most important issues and needs to be addressed and have the same guarantee as a public service pension.This needs to be written in to law same as if the worked in the public service.At present if government start to to run out of money by law they would have to pay the public service pensions the could stop paying the private sector pension.What posters don't realize it is already happening since they done away with the transition pension public sector workers on the integrated pension who retire from age 60 to 66 see there public sector pension is topped up until the reach pension age 66.I suspect the money is from the PRSI Fund and there employed dose not even pay into it if purple is correct in what he says.(this is not an anti public service rant if anything it is a rant at the private sector for allowing the government to pull the wool over there eyes) The Government need to put 10.75% of the public service wage bill along with the private sector into a fund so there is money building up to foward fund private sector pensions and public sector intergrated pensions.I know the public sector will still get paid even if there is no money in the PRSI Fund the Government still will have to pay and top up public sector pension for any short fall to prsi pension,
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J
jjm
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Torbledednam you seam to work in the public service can you confirm there is 10.75% prsi stopped along with your own prsi contributions please.I am only going of what another poster said but I will be able to check with someone who is in the public service in the next few days,(HSE)
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J
jjm
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FireFly I think you may be able to check is 10.75% Is paid in the HSE by employerDon't get too excited...there was still the inevitable post about PRSI
torblednam
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Yes, my payslip includes both employee's and employer's PRSI, same as anyone else insurable at class A.
J
jjm
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Thanks do you mind if I ask you is employers prsi @10.75% stopped on insurable employment under class D public service,
TheBigShort
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The pension issue is certainly a problem. It is unsustainable in the long-term. The public sector pension levy is now being proposed as a permanent fixture. As a public servant I support this measure.
I opposed it initially, as it had nothing to do with pensions, but rather paying for the private sector bankruptcies. But it is now proposed to contribute to the cost of public sector pensions and I accept that proposal as realistic.
On the other hand, it's not all doom and servitude for all private sector workers
https://www.google.ie/amp/www.rte.ie/amp/875987/
One day, when you upskill and better yourself, you too can be so rewarded!
(Ps. Nothing personal against the individual, good luck to her. But the system that facilitates this is rotten.)
I opposed it initially, as it had nothing to do with pensions, but rather paying for the private sector bankruptcies. But it is now proposed to contribute to the cost of public sector pensions and I accept that proposal as realistic.
On the other hand, it's not all doom and servitude for all private sector workers
https://www.google.ie/amp/www.rte.ie/amp/875987/
One day, when you upskill and better yourself, you too can be so rewarded!
(Ps. Nothing personal against the individual, good luck to her. But the system that facilitates this is rotten.)
torblednam
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I'm not sure if your use of the word "stopped" is just a colloquialism but just to be clear, employer's PRSI isn't a deduction from pay, it's the employer's contribution in addition to the employee's PRSI (which is "stopped").
I don't know about Class D, but I'm sure the answer is readily available.
J
jjm
Guest
Look who the cat brought in welcome to this part of the world,TheBigShort,
As a Public servant you know the PRSI A1 contributions paid by public servants after the 6 of april 1995 are intergrated with the old age pension to give you the same pension as public servants under the pre-1995 D stamp, .the understanding reached at the time said pre 95 and post 95 poblic servant with the exact same years would end up receiving the exact same pension at retirement
It worked out a little better for the post 95 public servant because they got a 5% pay rise because they would be paying a higher prsi contribuition than the post 95 public servant which also ment the finished up with 5% high final salary it even got better in 2012 when the government took the prsi A1 down from 8% to 4% and put the USC levy on the pre 95 public servants in 2012 the gap between pre and post 95 prsi was almost 6% now it is only about 1.5% to 2%
The reason I outlined the above has nothing to do with public servants and all to do with the people on hear on about people not getting the same terms and conditions as public servants and fail to realize the reason is down to themselves .Some also fell into the trap of people muddying the waters .
Lets look at someone in the private sector earning the same wage as some one in the public service we will take a final salary of 50000 euro and do the sums we will say both are 66 when they retire in 2017 both will get a pension of approx 12176 euro from there PRSI A1 conts public servant will finish up with 25000 euro in a pension 12176 from his prsi pension and 12824 from the pension he paid into which gives the public servant a total of 25000 euro
Private sector worker also has a private pension which will give him a annuity pension of 12824 euro which along with his 12176 from his prsi state pension gives him 25000 euro same as public servant.
There is a problem for the private sector worker if as TheBigShort says pensions are unsustainable in the long term the reason is the Goverment has under taken in there contract to pay the public servant 50% of his final salary.if the state pension goes down the state pays the balance for the public servent so he sees no loss of pension he still will receive the same amount if the state pension is cut the government under law will have to make up the loss for the public servant so he will get the same anyway. there is nothing wrong with this they have done there job in securing there pension entitlements which they have paid into .
There is a need to press the government to have the same contract for the private sector worker who paid the same PRSI A1 conts.for this to happen the government need to start putting money into a pension pot so they can treat both the same
This is the reason I have pointing out that for the last 40 years private sector workers and public sector workers post 1995 have being paying a lot more than 4% in PRSI A1 conts and payback time has arrived,Time we stopped allowing people to muddying the waters and pulling the wool for there own self-intrest,
As a Public servant you know the PRSI A1 contributions paid by public servants after the 6 of april 1995 are intergrated with the old age pension to give you the same pension as public servants under the pre-1995 D stamp, .the understanding reached at the time said pre 95 and post 95 poblic servant with the exact same years would end up receiving the exact same pension at retirement
It worked out a little better for the post 95 public servant because they got a 5% pay rise because they would be paying a higher prsi contribuition than the post 95 public servant which also ment the finished up with 5% high final salary it even got better in 2012 when the government took the prsi A1 down from 8% to 4% and put the USC levy on the pre 95 public servants in 2012 the gap between pre and post 95 prsi was almost 6% now it is only about 1.5% to 2%
The reason I outlined the above has nothing to do with public servants and all to do with the people on hear on about people not getting the same terms and conditions as public servants and fail to realize the reason is down to themselves .Some also fell into the trap of people muddying the waters .
Lets look at someone in the private sector earning the same wage as some one in the public service we will take a final salary of 50000 euro and do the sums we will say both are 66 when they retire in 2017 both will get a pension of approx 12176 euro from there PRSI A1 conts public servant will finish up with 25000 euro in a pension 12176 from his prsi pension and 12824 from the pension he paid into which gives the public servant a total of 25000 euro
Private sector worker also has a private pension which will give him a annuity pension of 12824 euro which along with his 12176 from his prsi state pension gives him 25000 euro same as public servant.
There is a problem for the private sector worker if as TheBigShort says pensions are unsustainable in the long term the reason is the Goverment has under taken in there contract to pay the public servant 50% of his final salary.if the state pension goes down the state pays the balance for the public servent so he sees no loss of pension he still will receive the same amount if the state pension is cut the government under law will have to make up the loss for the public servant so he will get the same anyway. there is nothing wrong with this they have done there job in securing there pension entitlements which they have paid into .
There is a need to press the government to have the same contract for the private sector worker who paid the same PRSI A1 conts.for this to happen the government need to start putting money into a pension pot so they can treat both the same
This is the reason I have pointing out that for the last 40 years private sector workers and public sector workers post 1995 have being paying a lot more than 4% in PRSI A1 conts and payback time has arrived,Time we stopped allowing people to muddying the waters and pulling the wool for there own self-intrest,
J
jjm
Guest
Yes the answer is readily available I looked up Year 2012 the year before the USC came in
PRSI Class D, Employee's paid approx 2.35% employer paid from about 1.5% to approx 2.5% Employer's/Employee's paid around 4.5% in total
PRSI Class A1 Employee's paid 8% employer's paid 10.75 Employer's/employee's paid a total of 18.75%
in 2013 the year the USC came in PRSI Class D employee's paid approx 2.35% employer's paid from 1.5 to approx 2.5% emplorer's/employee's paid around 4.5% in total+ the USC
in 2013 the year the USC came in PRSI Class A1 employee paid 4% employer's paid 10.75 Employer's/employee's paid 14.75 in total + the USC
in 2010 which is very interesting they put an extra 2% levy on the PRSI Class A1 total PRSI of 8%
in 2010 which is also very interesting they did not put the extra levy on the PRSI Class D you can see the minister and the department of finance were not going to shoulder any austerity measures like the PRSI Class A1 paye employee's which speaks for itself and we need to start standing up for ourselves and stop allowing them to walk all over us ,
ps
toblednam when i said stopped i meant to say total prsi paid by employer/employee
Employers prsi ti a payroll cost which is a tax on an employer/employee which has to be taken into account when they set the salary,
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The thing is though, it comes nowhere to covering the cost, which means someone else must pay for it.
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jjm
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Firefly If you look at a public servant Grade 3 earning around 37000 euro started working in on the 6 of april 1995 the year the PRSI Class A1 came in retiring on the 6 of april 2017 having reached retirement age between employer/employee they are paying 14.75% prsi more before 2013 add there pension contributions add there pension levy .I challange you to show me how that leval of contributions would not buy them there pension.
50% of 37000 euro will give you a pension of 18500 if they had 40 years service they would have 22 years service take away the state pension of 12176 from 18500 and you are left with 5676 if they had 40 years service they only have 22 by 2017 so if you devide 5676 by 40 years and multiply by 22 years you will get a pension of around 3111 euro show me how you come up with the figure showing it will not cover the cost of ther pension it is not there fault if there money was not invested they paid it in,
there are a lot of front line public servants on around 37000 euro,
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The employer contribution is meaningless - it's the taxpayer! You should look at the employee contribution. Oh and did you factor in the tax-free lump sum in your workings? 37,000 x 1.5 = 55,500. Divide this by 40 and multiply by 22 gives a tax-free lump sum of 30,525.
I stand corrected. I phrased my post very badly. I meant that there ins no net contribution from the State as employers PRSI just goes into general taxation so it's a zero sum equation.
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jjm
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Employers contribution for an PRSI Class A1 is very important to give you an example take two public servant grade 3 one started on the 4 April 1995 the would be employed under PRSI Class D and there employer would be paying anywhere from 1.5% to 2.5% into the PRSI FUND, Now take the other public servant who started on the 6 of April 1995 they would be employed under PRSI Class A1 and there employer would be paying 10.75% into the PRSI FUND.
I still challange you to show me how that level of contribution allowing for the 30,525 tax free lump sum would not buy them there pension
I still challange you to show me how that level of contribution allowing for the 30,525 tax free lump sum would not buy them there pension
Why are you fixated on the employer contribution? That's the taxpayer!! You should focus on the employee contribution and show me how much someone working from 1995 for 22 years at 37,000 would contribute to their pension. Should be easy enough - what's the employee contribution percentage??
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jjm
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Should be easier for you it was you who made the statment it comes nowhere to cover the cost which means someone else must pay
Again I repeat 10.75% Employers conts go into the prsi fund for anyone on PRSI Class A1 and this comes from the wealth created or paid by employer/employee for the service provided for each employee paying PRSI Class A1 and is directly related to 10.75 % of there wage and not any other taxpayer's
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Private sector employer contributions go to the State. That is a real net contribution to the State coffers.
State sector contributions are paid by the State to the State so there is no net contribution from the employer (it is the State paying itself).
There is no PRSI fund!
There is no State pension fund.
If there was one it would need to have €200,0000,000,000 in it.
I am interested in the employees contribution as that's the contribution they are paying for their pension - it's the deduction from your payslip. What's that percentage please?