MAIN
PRSI CHANGES
The 2003
PAYE/
PRSI year starts 1 January, 2003 and ends 31 December, 2003. This notice contains rate changes announced in the December 2002 budget. These changes are effective from 1 January 2003.
The annual earnings ceiling for
PRSI has been increased to €40,420 for employees in Classes A, B, C, D and H effective from 1 January, 2003.
For year 2003, the minimum contribution for Class S remains at €253.
From July 1, 2001 all people aged 70 or over are exempt from the 2% Health Contribution, regardless of whether or not they hold a medical card.
Full details of these changes are outlined below, and should be read carefully.
PRIVATE/PUBLIC SECTOR EMPLOYMENTS |
RATES OF CONTRIBUTION FROM 1 JANUARY 2003 |
CLASS A
| NON CUMULATIVE | | CUMULATIVE RECKONABLE EARNINGS |
Weekly Earnings Band | How much of Weekly Earnings | First €40,420 | Balance Over €40,420 |
A0 | €38 - €287 incl. | All All | Employer Employee | 8.50% Nil | 8.50% Nil |
|
AX | €287.01 - €356 incl. | All First €127
Balance | Employer Employee
Employee | 8.50% Nil
4.00% | 8.50% Nil
Nil |
|
A1 OR | In excess of €356 | All First €127
Balance | Employer Employee
Employee | 10.75% 2.00%
6.00% | 10.75% 2.00%
2.00% |
A2 For medical card holders, widows/widowers or lone parents. See notes below. |
In excess of €356 | All First €127
Balance | Employer Employee
Employee | 10.75% Nil
4.00% | 10.75% Nil
Nil |
PEOPLE WITHIN CLASS A |
People in industrial, commercial and service-type employment who are employed under a contract of service with reckonable earnings of 38 or more per week from all employments and Public Servants recruited from 6 April 1995. |
|
A8 and A9 - COMMUNITY EMPLOYMENT PARTICIPANTS ONLY |
A8 | Up to €287 incl. | Employer Employee | 0.50% on full allowance Nil on full allowance |
A9 | In excess of €287 | Employer Employee | 0.50% on full allowance 4.00% on allowance over €127 |
TOTAL
PRSI: The employer and employee deductions should be calculated separately and then added together.
|
PRIVATE SECTOR EMPLOYMENTS |
RATES OF CONTRIBUTION FROM 1 JANUARY 2003 |
CLASS J
| NON CUMULATIVE | | CUMULATIVE RECKONABLE EARNINGS |
Weekly Earnings Band | How much of Weekly Earnings | First €40,420 | Balance Over €40,420 |
J0 | Up to €356 | All All | Employer Employee | 0.50% Nil | 0.50% Nil |
|
J1 OR | In excess of €356 | All All | Employer Employee | 0.50% 2.00% | 0.50% 2.00% |
J2 For medical card holders, people aged 70 or over, widows/widowers or lone parents. See notes below. |
In excess of €356 | All All | Employer Employee | 0.50% Nil | 0.50% Nil |
PEOPLE WITHIN CLASS J |
The Class J contribution normally relates to people with reckonable earnings of less than €38 per week (from all employments). However, a small number of employees are insurable at Class J irrespective of earnings, e.g.
employees aged 66 or over, people in subsidiary employment, etc., see below. |
OCCUPATIONAL PENSIONS |
RATES OF CONTRIBUTION FROM 1 JANUARY 2003 |
CLASS K
| NON CUMULATIVE | | NO ANNUAL CEILING |
Weekly Income Band | How much of Weekly Income | All Income |
Record under Class M | Up to €356 | All | Nil |
|
K1 | In excess of €356 | All All | Employer Employee | Nil 2.00% |
PEOPLE WITHIN CLASS K |
People receiving income which is not subject to social insurance contributions but which is liable for the Health Contribution such as, Occupational Pensions, income deriving from positions of certain office holders (e.g. Judiciary and State Solicitors) and income of people aged 66 or over previously liable for Class S. |
CLASS M
| PEOPLE WITHIN CLASS M |
The M Class should be used for people with a NIL contribution liability e.g. employees under age 16, people within Class K with a NIL liability (i.e. medical card holders, widows/widowers, people aged 70 or over) etc. |
SELF-EMPLOYED |
RATES OF CONTRIBUTION FROM 1 JANUARY 2003 |
CLASS S
| NON CUMULATIVE | | NO ANNUAL CEILING |
Weekly Earnings Band | How much of Weekly Earnings | All Income |
S0 | Up to €356 | All All | Employer Self-Employed | Nil 3.00% |
|
S1 OR | In excess of €356 | All All | Employer Self-Employed | Nil 5.00% |
S2 For medical card holders, widows/widowers or lone parents. See notes below. |
In excess of €356 | All All | Employer Self-Employed | Nil 3.00% |
PEOPLE WITHIN CLASS S |
Self-employed peopled including certain company directors and people with income from investments and rents. See below. |
PUBLIC SECTOR EMPLOYMENTS |
RATES OF CONTRIBUTION FROM 1 JANUARY 2003 |
CLASS B
| NON CUMULATIVE | | CUMULATIVE RECKONABLE EARNINGS |
Weekly Earnings Band | How much of Weekly Earnings | First €40,420 | Balance Over €40,420 |
B0 | Up to €287 | All All | Employer Employee | 2.01% Nil | 2.01% Nil |
|
BX | €287.01 - €356 incl. | All First €26
Balance | Employer Employee
Employee | 2.01% Nil
0.90% | 2.01% Nil
Nil |
|
B1 OR | In excess of €356 | All First €26
Balance | Employer Employee
Employee | 2.01% 2.00%
2.90% | 2.01% 2.00%
2.00% |
B2 For medical card holders, widows/widowers or lone parents. See notes below. |
In excess of €356 | All First €26
Balance | Employer Employee
Employee | 2.01% Nil
0.90% | 2.01% Nil
Nil |
PEOPLE WITHIN CLASS B |
Permanent and pensionable Civil Servants recruited prior to 6 April 1995, Registered Doctors and Dentists employed in the Civil Service, and Garda. |
PUBLIC SECTOR EMPLOYMENTS |
RATES OF CONTRIBUTION FROM 1 JANUARY 2003 |
CLASS C
| NON CUMULATIVE | | CUMULATIVE RECKONABLE EARNINGS |
Weekly Earnings Band | How much of Weekly Earnings | First €40,420 | Balance Over €40,420 |
C0 | Up to €287 | All All | Employer Employee | 1.85% Nil | 1.85% Nil |
|
CX | €287.01 - €356 incl. | All First €26
Balance | Employer Employee
Employee | 1.85% Nil
0.90% | 1.85% Nil
Nil |
|
C1 OR | In excess of €356 | All First €26
Balance | Employer Employee
Employee | 1.85% 2.00%
2.90% | 1.85% 2.00%
2.00% |
C2 For medical card holders, widows/widowers or lone parents. See notes below. |
In excess of €356 | All First €26
Balance | Employer Employee
Employee | 1.85% Nil
0.90% | 1.85% Nil
Nil |
PEOPLE WITHIN CLASS C |
Commissioned Army Officers and members of the Army Nursing Service recruited prior to 6 April 1995. |
PUBLIC SECTOR EMPLOYMENTS |
RATES OF CONTRIBUTION FROM 1 JANUARY 2003 |
CLASS D
| NON CUMULATIVE | | CUMULATIVE RECKONABLE EARNINGS |
Weekly Earnings Band | How much of Weekly Earnings | First €40,420 | Balance Over €40,420 |
D0 | Up to €287 | All All | Employer Employee | 2.35% Nil | 2.35% Nil |
|
DX | €287.01 - €356 incl. | All First €26
Balance | Employer Employee
Employee | 2.35% Nil
0.90% | 2.35% Nil
Nil |
|
D1 OR | In excess of €356 | All First €26
Balance | Employer Employee
Employee | 2.35% 2.00%
2.90% | 2.35% 2.00%
2.00% |
D2 For medical card holders, widows/widowers or lone parents. See notes below. |
In excess of €356 | All First €26
Balance | Employer Employee
Employee | 2.35% Nil
0.90% | 2.35% Nil
Nil |
PEOPLE WITHIN CLASS D |
Permanent and pensionable employees in the public service, other than those mentioned in Classes B and C, recruited prior to 6 April 1995. |
PUBLIC SECTOR EMPLOYMENTS |
RATES OF CONTRIBUTION FROM 1 JANUARY 2003 |
CLASS H
| NON CUMULATIVE | | CUMULATIVE RECKONABLE EARNINGS |
Weekly Earnings Band | How much of Weekly Earnings | First €40,420 | Balance Over €40,420 |
H0 | Up to €287 | All All | Employer Employee | 10.05% Nil | 10.05% Nil |
|
HX | €287.01 - €356 incl. | All First €127
Balance | Employer Employee
Employee | 10.05% Nil
3.90% | 10.05% Nil
Nil |
|
H1 OR | In excess of €356 | All First €127
Balance | Employer Employee
Employee | 10.05% 2.00%
5.90% | 10.05% 2.00%
2.00% |
H2 For medical card holders, widows/widowers or lone parents. See notes below. |
In excess of €356 | All First €127
Balance | Employer Employee
Employee | 10.05% Nil
3.90% | 10.05% Nil
Nil |
PEOPLE WITHIN CLASS H |
NCO's and enlisted personnel of the Defence Forces. |