PRSI Contribution Rates and User Guide 2004 - SW14 » PRSI Contribution Rates and User Guide SW 14 » Publications

MAIN PRSI CHANGES FOR 2004

From 1 January 2004, PRSI and income tax must be collected by employers on the taxable value of benefit-in-kind (notional pay), subject to certain exceptions. The taxable value of the benefit must be added to the money salary in the pay period that the benefit is provided and PRSI and income tax calculated on the total.
Examples of taxable benefits can include private use of a company car, free or subsidised accommodation, preferential loans, various vouchers and payment by the employer of his employee's medical insurance or club subscriptions etc.
The annual pay ceiling for PRSI has increased to €42,160 for employees in classes A, B, C, D and H effective from 1 January 2004.

Full details of these changes are outlined below, and should be read carefully.

Class A - Class B - Class C - Class D - Class H - Class J - Class K - Class M - Class S

PRIVATE/PUBLIC SECTOR EMPLOYMENTS
RATES OF CONTRIBUTION FROM 1 JANUARY 2004
CLASS A	This covers employees in industrial, commercial and service-type employment who have reckonable pay of €38 or more per week from all employments and Public Servants recruited from 6 April 1995.
Subclass	Weekly Limits		Contributors	Annual Pay Ceiling
Weekly pay is the employee's money pay plus notional pay (if applicable).
	Weekly pay band	How much of weekly pay		Rate on first €42,160	Rate on balance over €42,160
A0	€38 - €287 inclusive	All	Employer	8.5%	8.5%
		All	Employee	Nil	Nil

AX	€287.01 - €356 inclusive	All	Employer	8.5%	8.5%
		First €127 Balance	Employee Employee	Nil 4.00%	Nil Nil

A1 OR	More than €356	All	Employer	10.75%	10.75%
		First €127 Balance	Employee Employee	2.00% 6.00%	2.00% 2.00%
A2 *
	More than €356	All	Employer	10.75%	10.75%
		First €127 Balance	Employee Employee	Nil 4.00%	Nil Nil
* For medical card holders, widows, widowers or lone parents. See notes below.

A8 and A9 - COMMUNITY EMPLOYMENT PARTICIPANTS ONLY
Subclass	Weekly Limits		Contributors	Annual Pay Ceiling
A8	Up to €287 inclusive		Employer	0.5% on full allowance
			Employee	Nil on full allowance
A9	More than €287		Employer	0.5% on full allowance
			Employee	4.00% on full allowance over €127
TOTAL PRSI: Calculate the employer and employee deductions separately and then add them together.

PRIVATE SECTOR EMPLOYMENTS
RATES OF CONTRIBUTION FROM 1 JANUARY 2004
CLASS J	This normally relates to people with reckonable pay of less than €38 per week (from all employments). However, a small number of employees are insurable at Class J no matter how much they earn, such as employees aged 66 or over or people in subsidiary employment etc, see below.
Subclass	Weekly Limits		Contributors	Annual Pay Ceiling
	Weekly pay band	How much of weekly pay		Rate on first €42,160	Rate on balance over €42,160
J0	Up to €356	All	Employer	0.5%	0.5%
			Employee	Nil	Nil

J1 OR	More than €356	All	Employer	0.5%	0.5%
			Employee	2.00%	2.00%
J2 *
	More than €356	All	Employer	0.50%	0.50%
			Employee	Nil	Nil
* For medical card holders, people aged 70 or over, widows, widowers or lone parents. See notes below.

OCCUPATIONAL PENSIONS
RATES OF CONTRIBUTION FROM 1 JANUARY 2004
CLASS K	This covers people receiving income that is not subject to social insurance contributions but which is liable for the Health Contribution. Income includes occupational pensions, income deriving from positions of certain office holders (such as judges and state solicitors) and income of people aged 66 or over previously liable for Class S.
	Weekly Limits		Contributors	No annual ceiling
	Weekly Pay Band	How much of weekly pay		All income
Record under Class M	Up to €356	All		Nil

K1	More than €356	All	Employer Employee	Nil 2.00%

CLASS M

This covers people with nil contribution liability such as employees under age 16 and people within Class K with a nil liability (medical card holders, widows or widowers, people aged 70 or over).

SELF-EMPLOYED
RATES OF CONTRIBUTION FROM 1 JANUARY 2004
CLASS S	This covers self-employed people, including certain company directors and people with income from investments and rents. See below.
	Weekly Limits		Contributors	No annual ceiling
	Weekly Pay Band	How much of weekly pay		All income
S0	Up to €356	All	Employer Self-Employed	Nil 3.00%

S1 OR	More than €356	All	Employer Self-Employed	Nil 5.00%
S2 *
S2 *	More than €356	All	Employer Self-Employed	Nil 3.00%
* For medical card holders, widows, widowers or lone parents. See notes below.

PUBLIC SECTOR EMPLOYMENTS
RATES OF CONTRIBUTION FROM 1 JANUARY 2004
CLASS B	This covers permanent and pensionable civil servants recruited before 6 April 1995, registered doctors and dentists employed in the civil service and Gardaí.
Subclass	Weekly Limits		Contributors	Annual Pay Ceiling
	Weekly pay band	How much of weekly pay		Rate on first €42,160	Rate on balance over €42,160
B0	Up to €287	All	Employer	2.01%	2.01%
B0	Up to €287	All	Employee	Nil	Nil

BX	€287.01 - €356 inclusive	All	Employer	2.01%	2.01%
BX	€287.01 - €356 inclusive	First €26 Balance	Employee Employee	Nil 0.9%	Nil Nil

B1 OR	More than €356	All	Employer	2.01%	2.01%
B1 OR	More than €356	First €26 Balance	Employee Employee	2.00% 2.90%	2.00% 2.00%
B2 *	More than €356	All	Employer	2.01%	2.01%
B2 *	More than €356	First €26 Balance	Employee Employee	Nil 0.90%	Nil Nil
* For medical card holders, widows, widowers or lone parents. See notes below.

PUBLIC SECTOR EMPLOYMENTS
RATES OF CONTRIBUTION FROM 1 JANUARY 2004
CLASS C	This covers commissioned Army Officers and members of the Army Nursing Service recruited before 6 April 1995.
Subclass	Weekly Limits		Contributors	Annual Pay Ceiling
	Weekly pay band	How much of weekly pay		Rate on first €42,160	Rate on balance over €42,160
C0	Up to €287	All	Employer	1.85%	1.85%
C0	Up to €287	All	Employee	Nil	Nil

CX	€287.01 - €356 inclusive	All	Employer	1.85%	1.85%
CX	€287.01 - €356 inclusive	First €26 Balance	Employee Employee	Nil 0.90%	Nil Nil

C1 OR	More than €356	All	Employer	1.85%	1.85%
C1 OR	More than €356	First €26 Balance	Employee Employee	2.00% 2.90%	2.00% 2.00%
C2 *	More than €356	All	Employer	1.85%	1.85%
C2 *	More than €356	First €26 Balance	Employee Employee	Nil 0.90%	Nil Nil
* For medical card holders, widows, widowers or lone parents. See notes below.

PUBLIC SECTOR EMPLOYMENTS
RATES OF CONTRIBUTION FROM 1 JANUARY 2004
CLASS D	This covers permanent and pensionable employees in the public service, other than those mentioned in Classes B and C, recruited before 6 April 1995.
Subclass	Weekly Limits		Contributors	Annual Pay Ceiling
	Weekly pay band	How much of weekly pay		Rate on first €42,160	Rate on balance over €42,160
D0	Up to €287	All	Employer	2.35%	2.35%
D0	Up to €287	All	Employee	Nil	Nil

DX	€287.01 - €356 inclusive	All	Employer	2.35%	2.35%
DX	€287.01 - €356 inclusive	First €26 Balance	Employee Employee	Nil 0.90%	Nil Nil

D1 OR	More than €356	All	Employer	2.35%	2.35%
D1 OR	More than €356	First €26 Balance	Employee Employee	2.00% 2.90%	2.00% 2.00%
D2 *	More than €356	All	Employer	2.35%	2.35%
D2 *	More than €356	First €26 Balance	Employee Employee	Nil 0.90%	Nil Nil
* For medical card holders, widows, widowers or lone parents. See notes below.

PUBLIC SECTOR EMPLOYMENTS
RATES OF CONTRIBUTION FROM 1 JANUARY 2004
CLASS H	This covers NCOs and enlisted personnel of the Defence Forces.
Subclass	Weekly Limits		Contributors	Annual Pay Ceiling
	Weekly pay band	How much of weekly pay		Rate on first €42,160	Rate on balance over €42,160
H0	Up to €287	All	Employer	10.05%	10.05%
H0	Up to €287	All	Employee	Nil	Nil

HX	€287.01 - €356 inclusive	All	Employer	10.05%	10.05%
HX	€287.01 - €356 inclusive	First €127 Balance	Employee Employee	Nil 3.90%	Nil Nil

H1 OR	In excess of €356	All	Employer	10.05%	10.05%
H1 OR	In excess of €356	First €127 Balance	Employee Employee	2.00% 5.90%	2.00% 2.00%
H2 *
	In excess of €356	All	Employer	10.05%	10.05%
	In excess of €356	First €127 Balance	Employee Employee	Nil 3.90%	Nil Nil
* For medical card holders, widows, widowers or lone parents. See notes below.

Last Updated: 01/10/2008 23:01

Download

Download Document Download the Leaflet: sw14_04.pdf (PDF, 87.05 KB)

PRSI Contribution Rates and User Guide 2004 SW 14

Download