Social Welfare Consolidation Act 2005 section 38BA

Calculation of certain rates of contribution applicable to part years

Section 38BA sets out how to calculate PRSI contributions when the contribution rate changes partway through a tax year, specifically for self-assessed income.

  • Applies to self-employed contributions, voluntary contributions by former self-employed persons, optional contributions, and contributions from certain employed contributors outside PAYE
  • Does not apply to employment income taxed through PAYE
  • Requires a weighted average calculation when rates change mid-year
  • The blended rate formula is: ((First Rate × Months at First Rate) + (Second Rate × Months at Second Rate)) ÷ 12

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