Pay-Related Social Insurance

The rates of PRSI given in the following tables are applicable from 1 January 2012 and include the Social Insurance Contribution, which applies to all income in 2012.

Income for PRSI purposes

PRSI is calculated on the employee's reckonable pay. Reckonable pay is the gross money pay plus notional pay (or benefit in kind) if applicable.

Share-based renumeration

From 2011, share-based remuneration is included as notional pay for calculating employee PRSI. Share-based remuneration is shares or stock (including share options) received by the employee in the employing company or the company which controls the employing company.

Share-based remuneration is subject to employee PRSI only, at the rate of 4%. Share-based remuneration, where applicable, should be included as income when determining the appropriate subclass for employees and when charging employee PRSI.

Share-based remuneration is not subject to employer PRSI. It should not be included as income when determining the appropriate subclass for employers and when charging employer PRSI.

In some cases this may result in a different PRSI subclass for the employer and for the employee.

Example: If a Class A employee has weekly pay of €350 and, in a particular week, has gains from share-based remuneration of €30. Employee PRSI is calculated on income of €380 - Subclass AL. Employer PRSI is calculated on income of €350 - Subclass AO.

Employer and employee PRSI should be added together as normal. If a different subclass applies to the employee and to the employer, the return must always be made at the employee's subclass.

Weekly income over €500

The Health Contribution was abolished in 2011. As a result of this change, subclasses such as, A2, A5, B2, C2, D2, H2, J2 and S2 no longer exist. Assuming wages/income remain the same, employees returned in 2011 under any of these subclasses should, in 2012, be returned as A1, A4 (if previously returned as A5), B1, C1, D1, H1, J1 or S1. Accordingly in all cases of weekly income of more than €500 a week, Subclass A1, A4, B1, C1, D1, H1, J1, or S1 should be returned.

Officeholders

Office holders pay PRSI at a rate of 4% on all income, where their income is over €5,200 a year. They should be returned at Class K.

Income of €100 or less

IMPORTANT: People with a nil liability, such as persons in receipt of occupational pensions and public office holders with a weekly income of €100 or less should be returned at Class M.

PRSI Classes B,C and D

PRSI Classes B, C and D will pay PRSI at 0.9% up to €1,443 per week and 4% above €1,443 per week.

PRSI exemption on low earnings/income

Employees covered under Classes A, B, C, D, E and H with reckonable weekly pay of €352 or less are exempt from paying PRSI for that week. However, the employer must pay his or her share of PRSI as normal. This will not affect employees' entitlement to benefits and pensions. Employees whose weekly pay/income fluctuates above and below the €352 exemption limit are not entitled to an annual refund.

Employee's PRSI-Free Allowance

The PRSI-Free Allowance remains at €127 per week for employees in Classes A and H with weekly earnings of more than €352 and at €26 per week for all employees in Classes B, C and D.

The allowance only applies for weeks of insurable employment in which PRSI is paid. Remember that this allowance does not affect the gross reckonable weekly pay thresholds in deciding the appropriate contribution subclass.

Contributions for self-employed people

Self-employed people with a total income of €5,000 or more in the tax year pay Class S social insurance contributions. The contributions are paid on a person's gross income less capital allowances and allowable superannuation.

The arrangements for paying self-employed contributions are described below.

Those who pay their tax directly to the Collector-General will pay their Social Insurance Contribution with their income tax. They will have to pay a Social Insurance Contribution of 4% of all income, or €253, whichever is greater.
Those paying PAYE tax will have their contributions deducted from their income by their employers.
Those who have been told by an Inspector of Taxes that they need not make a return of income must pay a flat rate contribution of €157 to this Department.
Those whose main income comes from share fishing and who have been classified as self-employed may opt to pay an extra contribution for certain benefits under Class P. In addition to the Class S contribution, they will pay a contribution of 4% of all income over the PRSI-Free Allowance of €2,500 per annum or €200, whichever is the greater.

Voluntary contributions

If you are no longer covered by compulsory PRSI, either as an employee or as a self-employed person, and you are under age 66, you may opt to become insured on a voluntary basis, so long as you satisfy certain conditions. The amount of a Voluntary Contribution in any contribution year is calculated as a percentage of your reckonable income, subject to a minimum and a maximum payment. There are three rates of voluntary contributions:

Ronan

Benefits Covered by the Three Rates of PRSI Voluntary Contributions
High Rate:	Low Rate:	Special Rate:	Benefits Covered:
Yes			State Pension (Transition)
Yes		Yes	State Pension (Contributory)
Yes	Yes	Yes	Widow's and Widower's or Surviving Civil Partner's (Contributory) Pension
Yes	Yes	Yes	Guardian's Payment (Contributory)
Yes	Yes	Yes	Bereavement Grant

High rate: 6.6% for people who last paid PRSI at Classes A, E and H
Low rate: 2.6% for people who last paid PRSI at Classes B, C and D
Special rate: Flat rate of €253 for people who last paid PRSI at Class S.

For more information, log on to 'www.welfare.ie'.

PRSI Contribution Rates

Class A

**Subclass A0**
Weekly income band (Including if appropriate shared-based remuneration)	How much of weekly income (Including if appropriate shared-based remuneration)	All income Employee (Including if appropriate shared-based remuneration)	All income Employer (Including if appropriate shared-based remuneration)
€38 - €352	All	Nil	4.25%

**Subclass AX**
Weekly income band (Including if appropriate shared-based remuneration)	How much of weekly income (Including if appropriate shared-based remuneration)	All income Employee (Including if appropriate shared-based remuneration)	All income Employer (Including if appropriate shared-based remuneration)
€352.01 - €356	First €127	Nil	4.25%
€352.01 - €356	Balance	4.00%	4.25%

**Subclass AL**
Weekly income band (Including if appropriate shared-based remuneration)	How much of weekly income (Including if appropriate shared-based remuneration)	All income Employee (Including if appropriate shared-based remuneration)	All income Employer (Including if appropriate shared-based remuneration)
€356.01 - €500	First €127	Nil	10.75%
€356.01 - €500	Balance	4.00%	10.75%

**Subclass A1**
Weekly income band (Including if appropriate shared-based remuneration)	How much of weekly income (Including if appropriate shared-based remuneration)	All income Employee (Including if appropriate shared-based remuneration)	All income Employer (Including if appropriate shared-based remuneration)
More than €500	First €127	Nil	10.75%
More than €500	Balance	4.00%	10.75%

Community Employment participants only

**Subclass A8**
Weekly income band (Including if appropriate shared-based remuneration)	How much of weekly income (Including if appropriate shared-based remuneration)	All income Employee (Including if appropriate shared-based remuneration)	All income Employer (Including if appropriate shared-based remuneration)
Up to €352 inclusive	All	Nil	0.50%

**Subclass A9**
Weekly income band (Including if appropriate shared-based remuneration)	How much of weekly income (Including if appropriate shared-based remuneration)	All income Employee (Including if appropriate shared-based remuneration)	All income Employer (Including if appropriate shared-based remuneration)
More than €352	First €127	Nil	0.50%
More than €352	Balance	4.00%	0.50%

People within Class A

People in industrial, commercial and service-type employment who are employed under a contract of service with reckonable pay of €38 or more per week from all employments.
Civil and Public Servants recruited from 6 April 1995.

Class A benefits

Jobseeker's Benefit
Illness Benefit
Maternity Benefit
Adoptive Benefit
Health and Safety Benefit
Invalidity Pension
Widow's or Widower's or Surviving Civil Partner's (Contributory) Pension
Guardian's Payment (Contributory)
State Pension (Contributory)
State Pension (Transition)
Bereavement Grant
Treatment Benefit
Occupational Injuries Benefits
Carer's Benefit

Class J

**Subclass J0**
Weekly income band (Including if appropriate shared-based remuneration)	How much of weekly income (Including if appropriate shared-based remuneration)	All income Employee (Including if appropriate shared-based remuneration)	All income Employer (Including if appropriate shared-based remuneration)
Up to €500 inclusive	All	Nil	0.50%

**Subclass J1**
Weekly income band (Including if appropriate shared-based remuneration)	How much of weekly income (Including if appropriate shared-based remuneration)	All income Employee (Including if appropriate shared-based remuneration)	All income Employer (Including if appropriate shared-based remuneration)
More than €500	All	Nil	0.50%

People within Class J

Normally 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 over age 66 or people in subsidiary employment. For more information, log on to 'www.welfare.ie'.

Class J benefits

Occupational Injuries Benefit

Class E

Subclass E0
Weekly income band	How much of weekly income	All income Employee	All income Employer
Up to €352	All	Nil	6.87%

Subclass E1
Weekly income band	How much of weekly income	All income Employee	All income Employer
More than €352	First €127	Nil	6.87%
More than €352	Balance	3.33%	6.87%

People within Class E

Ministers of Religion employed by the Church of Ireland Representative Body. PRSI is paid under the Special Collection System.

Class E benefits

Illness Benefit
Maternity Benefit
Adoptive Benefit
Health and Safety Benefit
Invalidity Pension
Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension
Guardian's Payment (Contributory)
State Pension (Contributory)
State Pension (Transition)
Bereavement Grant
Treatment Benefit
Carer's Benefit

Class B

**Subclass B0**
Weekly income band	How much of weekly income	All income Employee	All income Employer
Up to €352	All	Nil	2.01%

**Subclass BX**
Weekly income band	How much of weekly income	All income Employee	All income Employer
€352.01 - €500	First €26	Nil	2.01%
€352.01 - €500	Balance	0.90%	2.01%

**Subclass B1**
Weekly income band	How much of weekly income	All income Employee	All income Employer
More than €500	First €26	Nil	2.01%
	€26.01 - €1,443	0.90%	2.01%
	Balance	4.00%	2.01%

People within Class B

Permanent and pensionable civil servants recruited prior to 6 April 1995
Registered doctors and dentists employed in the Civil Service
Gardaí, recruited prior to 6 April 1995

Class B benefits

Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension
Guardian's Payment (Contributory)
Limited Occupational Injuries Benefits
Bereavement Grant
Carer's Benefit

Class C

**Subclass C0**
Weekly income band	How much of weekly income	All income Employee	All income Employer
Up to €352	All	Nil	1.85%

**Subclass CX**
Weekly income band	How much of weekly income	All income Employee	All income Employer
€352.01 - €500	First €26	Nil	1.85%
€352.01 - €500	Balance	0.90%	1.85%

**Subclass C1**
Weekly income band	How much of weekly income	All income Employee	All income Employer
More than €500	First €26	Nil	1.85%
	€26.01 - €1,443	0.90%	1.85%
	Balance	4.00%	1.85%

People within Class C

Commissioned Army Officers and members of the Army Nursing Service, recruited prior to 6 April 1995

Class C benefits

Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension
Guardian's Payment (Contributory)
Bereavement Grant
Carer's Benefit

Class D

**Subclass D0**
Weekly income band (Including if appropriate shared-based remuneration)	How much of weekly income (Including if appropriate shared-based remuneration)	All income Employee (Including if appropriate shared-based remuneration)	All income Employer (Including if appropriate shared-based remuneration)
Up to €352	All	Nil	2.35%

**Subclass DX**
Weekly income band (Including if appropriate shared-based remuneration)	How much of weekly income (Including if appropriate shared-based remuneration)	All income Employee (Including if appropriate shared-based remuneration)	All income Employer (Including if appropriate shared-based remuneration)
€352.01 - €500	First €26	Nil	2.35%
€352.01 - €500	Balance	0.90%	2.35%

**Subclass D1**
Weekly pay Band	How much of Weekly Pay	All income Employee	All income Employer
More than €500	First €26	Nil	2.35%
	€26.01 - €1,443	0.90%	2.35%
	Balance	4.00%	2.35%

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

Class D benefits

Widow's, Widower's or Surviving Civil partner's (Contributory) Pension
Guardian's Payment (Contributory)
Occupational Injuries Benefits
Bereavement Grant
Carer's Benefit

Class H

**Subclass H0**
Weekly income band	How much of weekly income	All income Employee	All income Employer
Up to €352	All	Nil	10.05%

**Subclass HX**
Weekly income band	How much of weekly income	All income Employee	All income Employer
€352.01 - €500	First €127	Nil	10.05%
€352.01 - €500	Balance	3.90%	10.05%

**Subclass H1**
Weekly income band	How much of weekly income	All income Employee	All income Employer
More than €500	First €127	Nil	10.05%
More than €500	Balance	3.90%	10.05%

People within Class H

NCOs and enlisted personnel of the Defence Forces

Class H benefits

Jobseeker's Benefit
Illness Benefit
Maternity Benefit
Adoptive Benefit
Health and Safety Benefit
Invalidity Pension
Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension
Guardian's Payment (Contributory)
State Pension (Contributory)
State Pension (Transition)
Bereavement Grant
Treatment Benefit (*Only certain benefits are paid during service)
Carer's Benefit

Class K

**Class K - No upper ceiling**
Weekly pay Band	How much of Weekly Pay	All Income Employee	All Income Employer
Up to €100 (No contribution payable. Record under Class M)	All	Nil	Nil

**Subclass K1 - No upper ceiling**
Weekly pay Band	How much of Weekly Pay	All Income Employee	All Income Employer
More than €100	All	4.00%	Nil

People within Class K

Certain Public Office holders with an income in excess of €100 a week (The public office holders affected include the President, the holder of a "qualifying office", members of the Oireachtas and the judiciary, certain military judges, the Attorney General, the Comptroller and Auditor General, members of a local authority and certain members of the European Parliament).

No Benefits under Class K

Class M - No contribution payable

People within Class M

People with no contribution liability such as employees under age 16 or people within Class K with a nil liability

Class M benefits

Occupational Injuries Benefits, in certain cases

Class S - No upper ceiling

**Subclass S0**
Weekly income band	How much of weekly income	All income
Up to €500	All	4.00%

**Subclass S1**
Weekly income band	How much of weekly income	All income
More than €500	All	4.00%

People within Class S

Self-employed people, including certain company directors and certain people with income from investments and rents. Log on to 'www.welfare.ie' for more information.

The minimum annual contribution for Class S is €253 for the year 2012

Class S benefits

Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension
Guardian's Payment (Contributory)
State Pension (Contributory)
Maternity Benefit
Adoptive Benefit
Bereavement Grant.

Class P

**Class P (optional)**
	All income
First €2,500 per year	Nil
Balance	4.00%

People within Class P

Sharefishermen/women who are classified as self-employed and who are already paying PRSI under Class S.

This contribution is over and above the PRSI paid under Class S.

The minimum annual contribution for Class P is 4% of all income or €200 whichever is the greater for the year 2011.