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Abolition of employee PRSI relief on employee pension contributions.
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12.— (1) The Principal Act is amended—
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(a) in section 2(1) by substituting the following definition for the definition of “reckonable emoluments”:
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“ ‘reckonable emoluments’, in relation to a self-employed contributor, means emoluments (other than reckonable earnings and any other emoluments that may be prescribed) to which Chapter 4 of Part 42 of the Act of 1997 applies;”,
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(b) in section 13(2)—
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(i) in paragraph (b) by substituting “paragraph (ba)” for “paragraph (c)”, and
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(ii) by inserting the following paragraph after paragraph (b):
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“(ba) Where in any contribution week—
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(i) a payment of more than €356 is made to or for the benefit of an employed contributor in respect of reckonable earnings of that employed contributor, and
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(ii) other than in a case to which subsection (8) applies, the employed contributor’s employer is liable, under paragraph (d)(i), to pay a contribution at the rate of 7.8 per cent,
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then the reckonable earnings of that employed contributor shall be calculated as if, in that week, they amount to €356 and there shall be payable a contribution by that employed contributor at the rate of €9.16, in that week, (or the equivalent thereof in the case of an employed contributor remunerated otherwise than on a weekly basis) in respect of each employment to which that payment relates.”,
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(c) by deleting section 38, and
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(d) in section 38A(1) (inserted by section 8 of the Act of 2009) by substituting “section 34 or 37” for “section 34, 37 or 38”.
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(2) This section comes into operation on 1 January 2011.
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