Photo AI
Explain the term PRSI - Leaving Cert Home Economics - Question 9 - 2012
Question 9
Explain the term PRSI. Pay Related Social Insurance (PRSI) is a mandatory contribution system in which both employees and employers contribute a specified percentag... show full transcript
Worked Solution & Example Answer:Explain the term PRSI - Leaving Cert Home Economics - Question 9 - 2012
Step 1
Explain the term PRSI.
Answer
Pay Related Social Insurance (PRSI) is a system of compulsory deductions made from an individual's income, where contributions are shared between the employer and employee. The contributions are determined based on a percentage of the employee's earnings. Individuals aged 16 years and older are typically required to contribute, although exemptions may apply to those earning below a certain threshold. The purpose of PRSI is to fund various social welfare benefits that provide financial assistance in different circumstances, such as unemployment, maternity leave, and pension support.
Step 2
State two benefits of PRSI to the individual.
Answer
(i) PRSI entitles individuals to unemployment benefits, job seeker's allowance, maternity benefits, and a contributory state pension, offering financial support during periods of need.
(ii) It provides access to various non-cash benefits, such as dental, optical, and disability benefits, and contributes to initiatives that support employment and training schemes.