Dublin Chamber of Commerce has called on the Government to incentivise “micro-companies” to hire new staff. In a pre-budget submission it argued that micro-firms, which have up to nine staff, should benefit from a three-year waiver of employers’ PRSI for each new staff member.

While such firms pay 10.75 per cent tax on each staff member they employ, the chamber called on the Government to offer a PRSI tax credit to boost jobs growth in smaller firms.

“Employer’s PRSI is currently the same regardless of the size of the business,” said Gina Quin, chief executive of Dublin chamber. “Small growing businesses are taking a chance with each new person that they take on. The Government’s current approach to employer’s PRSI often makes it just too big a risk to take.

“Removing the PRSI burden will get more people working in small businesses. If each of the 80,000 micro-businesses in Ireland hired just one extra person, it would bring the unemployment rate down by a third.”

In its submission, the chamber said the Government should do more to support entrepreneurs and and owners through all stages of the business cycle.

The chamber said the Coalition should introduce capital gains tax relief for entrepreneurs, similar to a British scheme. “Over the past five years, the UK has rolled out the red carpet for foreign entrepreneurs by introducing a swathe of tax improvements and incentives for young companies,” she added. “The Government here must follow suit and bring our own tax environment into line with that available to UK-based companies.”