(1) The Health Contributions Act 1979 is amended -

(a) in section 5 by inserting the following after subsection (1):

"(1A) Notwithstanding subsection (1) of this section and subject to subsection (1B) of this section, where the amount of reckonable earnings paid exceeds -

(a) €1,925, in the case where the period in respect of which the payment concerned is made is a week, or

(b) a corresponding amount, in the case where the period in respect of which the payment concerned is made is greater or less than a week,

the health contribution payable under this section shall be calculated at the rate of -

(i) 2 per cent of €1,925 or of the corresponding amount, as the case may be, and

(ii) 2.5 per cent of the amount of the excess.

(1B) Where an individual's reckonable earnings for a particular contribution year do not exceed €100,100, subsection (1A) (ii) of this section shall be construed as if '2 per cent' were substituted for '2.5 per cent' and any health contributions overpaid in respect of that contribution year shall be repaid to the individual.",

(b) in section 6 by inserting the following after subsection (1):

"(1A) Notwithstanding subsection (1) of this section and subject to subsection (1B) of this section, where the amount of reckonable emoluments paid exceeds -