Advance Notice of PRSI Changes For Computer Users July 2011
Information Services
Social Welfare Services
College Road
Sligo
2011
Advance notice of PRSI changes for computer users
This notice contains the rate changes in PRSI effective from 2 July 2011 and other updates.
Where this document differs from the January 2011 edition bolded and italicized text is used.
Employee's annual earnings ceiling
Employee PRSI is now payable (where appropriate) on all income.
Employee's income thresholds
- The threshold for employee PRSI remains at €352 a week.
- Office holders will pay PRSI at a rate of 4% on all income, where their income is over €5,200 per annum. They should be returned at Class K.
- IMPORTANT: People with a nil liability, such as persons in receipt of occupational pensions should be returned at Class M.
- The Health Contribution has been abolished.
- In 2011, some subclasses (For example: AL and A1) feature identical rates. This reflects the removal of the Health Contribution charge from certain subclasses.
- As a result of this change, other subclasses, such as, A2, B2, C2, D2, H2, J2 and S2 no longer exist but they have been retained in this guide so that significant changes to payroll systems are not required in moving from 2010 to 2011.
- No need to change the PRSI subclass to account for the abolition of the Health Contribution. For example, those paying Subclass A1 in 2010 will continue to pay Subclass A1 in 2011 (assuming their wages remain the same).
- PRSI Classes B, C and D will pay PRSI at 0.9% below €1,443 per week and 4% above €1,443 per week.
Employee's PRSI-Free Allowance
The PRSI-Free Allowance for employees in Classes A and H with weekly earnings of more than €352 remains at €127 a week and at €26 a week for all employees in Classes B, C and D.
For employees paid other than weekly, alternatives to the PRSI-Free Allowance are:
|
Classes
|
A
|
B,C,D
|
| Fortnightly |
€254 |
€52 |
| Monthly |
€551 |
€113 |
Self-employed PRSI
The Class S rate has increased from 3% to 4% and is payable only on annual income of €5,000 (previously applied to annual income of €3,174 or more). The minimum annual contribution for Class S remains at €253.
Employer's PRSI rates
Employer's PRSI on those earning less than €356 a week or equivalent has been halved.
Earnings bands and subclasses
|
Subclasses
|
A0
|
A6, A8, B0, C0, D0 & H0
|
| Weekly |
€38 to €352
|
€352 or below
|
| Fortnightly |
|
€704 or below
|
| Monthly |
|
€1,525 or below
|
Note: This threshold only applies to Class A employees, whose total earnings in each week of the fortnight or month are at least €38.
|
Subclass
|
AX
|
| Weekly |
€352.01 to €356
|
| Fortnightly |
€704.01 to €712
|
| Monthly |
€1,525.01 to €1,543
|
|
Subclass
|
AL
|
| Weekly |
€356.01 to €500
|
| Fortnightly |
€712.01 to €1,000
|
| Monthly |
€1,543.01 to €2,167
|
|
Subclasses
|
A7, BX, CX, DX and HX
|
A9
|
JO, M, and SO
|
| Weekly |
€352.01 to €500
|
greater than €352
|
€500 or below
|
| Fortnightly |
€704.01 to €1,000
|
greater than €704
|
€1,000 or below
|
| Monthly |
€1,525.01 to €2,167
|
greater than €1,525
|
€2,167 or below
|
|
Subclass
|
A1, A2, A4 and A5
|
| Weekly |
over €500
|
| Fortnightly |
over €1,000
|
| Monthly |
over €2,167
|
|
Subclass
|
K1
|
| Weekly |
over €100
|
| Fortnightly |
over €200
|
| Monthly |
over €433
|
This advance notice of PRSI changes for computer users is available on our website at 'www.welfare.ie' or through our PRSI mailing list. If you wish to add your name to our list, please register at 'www.welfare.ie'.
PRSI contribution rates from 2 July 2011
Private And Some Public Sector Employments
| Non-Cumulative Weekly Earnings Band |
PRSI Subclasses |
How Much Of Weekly Earnings |
Employee % |
Employer % |
Employee + Employer % |
| Up to €37.99 |
|
ALL
|
0
|
0.50
|
0.50
|
| €38 - €352 |
AO
|
ALL
|
0
|
4.25
|
4.25
|
| €352.01 - €356 |
AX
|
First €127
|
0
|
4.25
|
4.25
|
|
AX
|
Balance
|
4.00
|
4.25
|
8.25
|
| €356.01 - €500 |
AL
|
First €127
|
0
|
10.75
|
10.75
|
|
AL
|
Balance
|
4.00
|
10.75
|
14.75
|
| More than €500 |
A1
|
First €127
|
0
|
10.75
|
10.75
|
|
A1
|
Balance
|
4.00
|
10.75
|
14.75
|
|
A2
|
First €127
|
0
|
10.75
|
10.75
|
|
A2
|
Balance
|
4.00
|
10.75
|
14.75
|
Use the following subclasses (A6, A7, A4 and A5) only for approved employees under the Employer's PRSI Exemption Scheme and Employer Job (PRSI) Incentive Scheme.
| Non-Cumulative Weekly Earnings Band |
PRSI Subclasses |
How Much Of Weekly Earnings |
Employee % |
Employer % |
Employee + Employer % |
| Up to €352 |
A6
|
ALL
|
0
|
0
|
0
|
| €352.01 - €500 |
A7
|
First €127
|
0
|
0
|
0
|
|
A7
|
Balance
|
4.00
|
0
|
4.00
|
| More than €500 |
A4
|
First €127
|
0
|
0
|
0
|
|
A4
|
Balance
|
4.00
|
0
|
4.00
|
|
A5
|
First €127
|
0
|
0
|
0
|
|
A5
|
Balance
|
4.00
|
0
|
4.00
|
Use the following subclasses for Community Employment participants.
| Non-Cumulative Weekly Earnings Band |
PRSI Subclasses |
How Much Of Weekly Earnings |
Employee % |
Employer % |
Employee + Employer % |
| Up to €352 |
A8
|
ALL
|
0
|
0.50
|
0.50
|
| More than €352 |
A9
|
First €127
|
0
|
0.50
|
0.50
|
|
A9
|
Balance
|
4.00
|
0.50
|
4.50
|
Class J normally relates to people with reckonable earnings of less than €38 a week (from all employments). However, the following employees are insurable at Class J, regardless of earnings: employees aged 66 or over and people in subsidiary employment.
| Non-Cumulative Weekly Earnings Band |
PRSI Subclasses |
How Much Of Weekly Earnings |
Employee % |
Employer % |
Employee + Employer % |
| Up to €500 |
J0
|
ALL
|
0
|
0.50
|
0.50
|
| More than €500 |
J1
|
ALL
|
0
|
0.50
|
0.50
|
|
J2
|
ALL
|
0
|
0.50
|
0.50
|
| FÁS Allowance |
J9
|
ALL
|
0
|
0.50
|
0.50
|
Office Holders
| Non-Cumulative Weekly Earnings Band |
PRSI Subclasses |
How Much Of Weekly Earnings |
Employee % |
Employer % |
Employee + Employer % |
| Up to €100 |
M
|
ALL
|
0
|
0
|
0
|
| More than €100 |
K1
|
ALL
|
4.00
|
0
|
4.00
|
Class M relates to people with a nil contribution liability (such as employees under age 16 and persons in receipt of occupational pensions).
Occupational Pensions
| Non-Cumulative Weekly Earnings Band |
PRSI Subclasses |
How Much Of Weekly Earnings |
Employee % |
Employer % |
Employee + Employer % |
| All Income |
M
|
ALL
|
0
|
0
|
0
|
Public Sector Employments - PRSI Class B
| Non-Cumulative Weekly Earnings Band |
PRSI Subclasses |
How Much Of Weekly Earnings |
Employee % |
Employer % |
Employee + Employer % |
| Up to €352 |
B0
|
ALL
|
0
|
2.01
|
2.01
|
| €352.01 - €500 |
BX
|
First €26
|
0
|
2.01
|
2.01
|
|
BX
|
Balance
|
0.90
|
2.01
|
2.91
|
| More than €500 |
B1
|
First €26
|
0
|
2.01
|
2.01
|
|
B1
|
€26.01 - €1,443
|
0.90
|
2.01
|
2.91
|
|
B1
|
Balance
|
4.00
|
2.01
|
6.01
|
|
B2
|
First €26
|
0
|
2.01
|
2.01
|
|
B2
|
€26.01 - €1,443
|
0.90
|
2.01
|
2.91
|
|
B2
|
Balance
|
4.00
|
2.01
|
6.01
|
Public Sector Employments - PRSI Class C
| Non-Cumulative Weekly Earnings Band |
PRSI Subclasses |
How Much Of Weekly Earnings |
Employee % |
Employer % |
Employee + Employer % |
| Up to €352 |
C0
|
ALL
|
0
|
1.85
|
1.85
|
| €352.01 - €500 |
CX
|
First €26
|
0
|
1.85
|
1.85
|
|
CX
|
Balance
|
0.90
|
1.85
|
2.75
|
| More than €500 |
C1
|
First €26
|
0
|
1.85
|
1.85
|
|
C1
|
€26.01 - €1,443
|
0.90
|
1.85
|
2.75
|
|
C1
|
Balance
|
4.00
|
1.85
|
5.85
|
|
C2
|
First €26
|
0
|
1.85
|
1.85
|
|
C2
|
€26.01 - €1,443
|
0.90
|
1.85
|
2.75
|
|
C2
|
Balance
|
4.00
|
1.85
|
5.85
|
Public Sector Employments - PRSI Class D
| Non-Cumulative Weekly Earnings Band |
PRSI Subclasses |
How Much Of Weekly Earnings |
Employee % |
Employer % |
Employee + Employer % |
| Up to €352 |
D0
|
ALL
|
0
|
2.35
|
2.35
|
| €352.01 - €500 |
DX
|
First €26
|
0
|
2.35
|
2.35
|
|
DX
|
Balance
|
0.90
|
2.35
|
3.25
|
| More than €500 |
D1
|
First €26
|
0
|
2.35
|
2.35
|
|
D1
|
€26.01 - €1,443
|
0.90
|
2.35
|
3.25
|
|
D1
|
Balance
|
4.00
|
2.35
|
6.35
|
|
D2
|
First €26
|
0
|
2.35
|
2.35
|
|
D2
|
€26.01 - €1,443
|
0.90
|
2.35
|
3.25
|
|
D2
|
Balance
|
4.00
|
2.35
|
6.35
|
Public Sector Employments - PRSI Class H
| Non-Cumulative Weekly Earnings Band |
PRSI Subclasses |
How Much Of Weekly Earnings |
Employee % |
Employer % |
Employee + Employer % |
| Up to €352 |
H0
|
ALL
|
0
|
10.05
|
10.05
|
| €352.01 - €500 |
HX
|
First €127
|
0
|
10.05
|
10.05
|
|
HX
|
Balance
|
3.90
|
10.05
|
13.95
|
| More than €500 |
H1
|
First €127
|
0
|
10.05
|
10.05
|
|
H1
|
Balance
|
3.90
|
10.05
|
13.95
|
|
H2
|
First €127
|
0
|
10.05
|
10.05
|
|
H2
|
Balance
|
3.90
|
10.05
|
13.95
|
Self-employed (on PAYE system only) - PRSI Class S
| Non-Cumulative Weekly Earnings Band |
PRSI Subclasses |
How Much Of Weekly Earnings |
Employee % |
Employer % |
Employee + Employer % |
| Up to €500 |
S0
|
ALL
|
4.00
|
0
|
4.00
|
| More than €500 |
S1
|
ALL
|
4.00
|
0
|
4.00
|
|
S2
|
ALL
|
4.00
|
0
|
4.00
|
Important points to note
- Employer's PRSI on those earning less than €356 a week has been halved.
- The annual earnings ceiling for PRSI has been removed for employees in Classes A, B, C, D and H.
- The Health Contribution has been abolished.
- In 2011, some subclasses (For example: AL and A1) feature identical rates. This reflects the removal of the Health Contribution charge from certain subclasses.
- As a result of this change, other subclasses, such as, A2, B2, C2, D2, H2, J2 and S2 no longer exist but they have been retained in this guide so that significant changes to payroll systems are not required in moving from 2010 to 2011.
- There is no need to change the PRSI subclass for employees (assuming their wages remain the same).
- New employees (in general) should be assigned Subclass AO, AX, AL or A1 depending on the level of wages paid.
- Class A employees earning between €38 and €352 inclusive a week should be recorded under Subclass AO.
- Class A employees earning between €352.01 and €356 a week should be recorded under Subclass AX.
- Class A employees earning between €356.01 and €500 a week should be recorded under Subclass AL.
- Community Employment participants earning €352 or less a week should be recorded under Subclass A8. Subclass A9 applies when earnings are more than €352 a week.
- The Class J contribution normally relates to people with reckonable earnings of less than €38 a week (from all jobs). However, a small number of employees are insurable at Class J, regardless of earnings - for example, employees over age 66 and people in subsidiary employment.
- For employees taken on under the Employer's PRSI Exemption Scheme and the Employer Job (PRSI) Incentive Scheme, Subclass A6 is applied to employees earning €352 or less a week - normally insurable at Subclass AO. Subclass A7 is for those earning between €352.01 and €500 inclusive a week - normally insurable at Subclass AX or AL. In any week where earnings exceed €500, Subclass A4 applies to exempted employees who would normally be insurable at Subclass A1. Subclass A5 applies to those who would normally be insurable at Subclass A2 (i.e. medical card holders, and people getting a Widow's or Widower's Pension, a One Parent Family Payment or Deserted Wife's Benefit/Allowance).
- Relief from PRSI contributions in respect of payments by employees to pensions has been abolished. Employers have to pay employer contributions in respect of half of these payments.
- There is no change to the treatment of contributions to pensions made by employers. The above change relates to the PRSI treatment of employee pension only.
- Civil and public servants will pay PRSI on the 'Pension levy' portion of their salaries. Civil and public service employers do not have to pay any employer PRSI on the 'Pension levy'.
- Relief from PRSI in respect of payments by employees to their own pensions and PRSAs has been abolished. Employees now pay PRSI on payments they make to their pensions or PRSAs. Employers PRSI is payable on half of the employee payment to the pension or PRSA.
- Contributions by employers to employee pensions and PRSAs do not attract the charge to either employee or employer PRSI.
- A separate notice will deal with issues relating to PRSI and shares, employer PRSI paid to date in respect of share based income, and PRSI paid to date in respect of employer PRSA contributions.
- You can download PRSI information booklets from our website at 'www.welfare.ie'.
When completing a P35, P60 or P45, do not include any class or subclass of PRSI that did not apply during the year.