What Is PRSI?

Pay-related social insurance (PRSI) is compulsory insurance payable by employees, employers and the self-employed. The idea is that you can draw on your contributions by claiming social welfare benefits if, for example, you become unemployed, or if you have no old age pension.

PRSI rates

PRSI broadly applies for 2018 as follows:

•  Employee4% on earnings above €352 per week (earnings below €352 per week are exempt).

•  Employer10.95% on earnings of above €386 per week (earnings below €386 per week are liable at 8.7%)

•  Self-employed4%: All earnings. The minimum contribution is €500 per year.

There are nine PRSI classes: A, B, C, D, H, J, K, M, S. Each is divided into subclasses which determine the PRSI payable.

PRSI classes

Class A

Class A applies to:

•  Employees under the age of 66 in industrial, commercial and service-type employment who have reckonable pay of €38 or more per week from all employments.

•  Public servants recruited from 06.04.1995.

Subclass
Weekly pay band
Employee
Employer
A0 €38-€352 nil 8.7%
AX* €352.01 – €386 4% 8.7%
AL* €386.01-€424 4% 10.95%
A1 more than €424 4% 10.95%
A8 ** up to €352 nil 0.5%
A9 ** more than €352 4% 0.5%

*   A PRSI credit of up to €12.00 per week applies to earnings between €352.01 and €424 in a week. The credit is reduced by one-sixth of earnings in excess of €352.01.

** Community employment participants.

Class A benefits: unemployment benefit, disability benefit, health and safety benefit, maternity benefit, adoptive benefit, invalidity pension, widows or widowers contributory pension, orphans contributory allowance, retirement pension, old age contributory pension, death grant, treatment benefit, occupational injuries benefits.

Class B

Class B applies to:

•  Permanent and pensionable civil servants recruited before 06.04.1995.

•  Registered doctors and dentists employed in the civil service before 06.04.1995.

•  Gardaí recruited before 06.04.1995.

Subclass
Weekly pay band
Employee
Employer
B0 up to €352 nil 2.01%
BX €352.01 – €500 0.9% 2.01%
B1 more than €500 – first €1,443 0.9% 2.01%
balance 4% 2.01%

Class B benefits: widows or widowers contributory pension, orphans contributory allowance, limited occupational injuries benefits.

Class C

Class C applies to commissioned Defence Force officers and nurses recruited before 06.04.1995.

Subclass
Weekly pay band
Employee
Employer
C0 up to €352 nil 1.85%
CX €352.01 – €500 0.9% 1.85%
C1 more than €500 – first €1,443 0.9% 1.85%
balance 4% 1.85%

Class C benefits: widows or widowers contributory pension, orphans contributory allowance.

Class D

Class D applies to permanent and pensionable public service employees other than those in Classes B and C, recruited before 06.04.1995.

Subclass
Weekly pay band
Employee
Employer
D0 up to €352 nil 2.35%
DX €352.01 – €500 0.9% 2.35%
D1 more than €500 – first €1,443 0.9% 2.35%
balance 4% 2.35%

Class D benefits: widows or widowers contributory pension, orphans contributory allowance, limited occupational injuries benefits.

Class H

Class H applies to NCOs and enlisted Defence Forces personnel.

Subclass
Weekly pay band
Employee
Employer
H0 up to €352 nil 10.25%
HX €352.01 – €424 3.9% 10.25%
H1 more than €424 3.9% 10.25%

Class H benefits: unemployment benefit, disability benefit, health and safety benefit, maternity benefit, adoptive benefit, invalidity pension, widows or widowers contributory pension, orphans contributory allowance, retirement pension, old age contributory pension, death grant, treatment benefit.

Class J

Class J applies to:

•  People with reckonable pay of less than €38 per week (from all employments).

•  Employees aged 66 or over.

•  People in subsidiary employment.

Subclass
Weekly pay band
Employee
Employer
J0 up to €500 nil 0.5%
J1 more than €500 nil 0.5%

Class J benefits: occupational injuries benefits.

Class K

Class K applies to public office holders receiving income of more  than €5,200 a year.

Public office holders with weekly income of €100 or less should be returned at Class M.

Subclass
Weekly pay band
Employee
Employer
K1 more than €100 4% nil

Class K benefits: Nil.

Class M

Class M relates to people with a nil contribution liability:

•  employees under age 16,

•  people aged 66 or over,

•  persons in receipt of occupational pensions or lump-sum termination payments,

•  public office holders with a weekly income of less than €100 a week).

Class M benefits: In certain circumstances, occupational injuries benefit.

Class S

Class S applies to:

•  self-employed people,

•  certain company directors,

•   certain people with income from investments and rent,

•  certain Local Authority members.

Subclass Weekly pay band Self-employment income
S0 up to €500 4%
S1 more than €500 4%

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