Emer Currie
Ceist:836. Deputy Emer Currie asked the Minister for Social Protection if his Department has considered a proposal relating to childcare (details supplied); and if he will make a statement on the matter. [12563/26]
Amharc ar fhreagraTuesday, 17 February 2026
Ceisteanna (836)
Freagraí scríofa
It is understood from clarification received from the Deputy that the question relates to the introduction of an employer PRSI exemption for persons who employ childminders.
The Department of Children, Equality, Disability, Integration and Youth is the primary department responsible for policy matters relating to the childcare sector.
My Department administers the Pay Related Social Insurance (PRSI) system which is, with very few exceptions, compulsory for all employees and self-employed individuals aged 16 or over.
Under section 986(6) of the Taxes Consolidation Act 1997, certain qualifying employers known as ‘domestic employers’ are removed from the obligation to register as an employer. Families who employ childminders would fall under the category of ‘domestic employers’. To qualify as ‘domestic employers’ the employer needs to be an individual, have only one domestic employee, and pay less than €40 per week to that employee.
Although a domestic employer is not required to register as an employer, they are liable to pay employer PRSI on the employment. For domestic employees who earn less than €40 per week, the appropriate PRSI class is J and the employer PRSI rate applicable is 0.5%. This PRSI class entitles the employee to Occupational Injuries Benefit only. PRSI is payable by the employer in a single sum at the end of the tax year to the PRSI Special Collection Section of my Department.
However, if the employer pays over €40 per week or has more than one domestic employee concurrently they will need to pay income tax, PRSI and USC in the normal way under Revenue's PAYE return method. With regards to employer PRSI for employees earning over €40 per week, the applicable PRSI class is class A and the employer rate is 9% for those with employees earning up to €552 per week while earnings over €552 per week are charged at 11.25%.
For these class A contributions, the employee is entitled to the full range of benefits available under the Social Insurance Fund which will cover them in the event of certain contingencies arising during their working life such as unemployment, illness, maternity and, thereafter, upon retirement from the work force.
I am satisfied with the current rules that apply in this matter and I have no plans to introduce an employer PRSI exemption for families who employ childminders. Any changes to the current system would need to be considered in an overall policy and budgetary context.
I trust this clarifies the matter for the Deputy.