Rates of Payment 2018 - SW19

The rates of PRSI given in the following tables are applicable from 1 January 2018 and include the Social Insurance Contribution, which applies to all income in 2018.

Employer PRSI

The National Training Fund Levy (NTFL), collected alongside Employer PRSI for Classes A and H, will increase by 0.1% from 0.7% to 0.8% from 1 January 2018. This means that Employer rates (combined PRSI and NTFL) for Classes A and H will increase by 0.1%.

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

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.

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.

Pension Contributions

PRSI is fully chargeable on payments by private sector employees in respect of:

•  Superannuation contributions
•  Permanent health benefit schemes (including income continuance schemes)
•  Revenue approved schemes established under irrevocable trusts, overseas pension schemes and other Revenue exempt approved schemes
•  Personal Retirement Savings Account
•  Deductions in respect of Revenue approved retirement funds

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'.

PRSI Credit Classes A and H

Class A employee PRSI will continue to be calculated at 4% of gross weekly
earnings.

However, for gross earnings between €352.01 and €424.00 in a week, the 4% PRSI charge is reduced by the PRSI Credit.

The amount of PRSI Credit depends on gross weekly earnings. At gross weekly
earnings of €352.01, the maximum PRSI Credit of €12.00 per week applies. For
earnings between €352.01 and €424.00, the maximum weekly PRSI Credit of
€12.00, is reduced by one sixth of earnings in excess of €352.01.

The calculation of the PRSI charge for Class A, with gross weekly earnings between €352.01 and €424.00, involves 3 separate calculations:

1. Calculate the PRSI Credit
2. Calculate the PRSI charge @ 4%
3. Deduct the PRSI Credit from the 4% PRSI charge

The following example shows how to calculate the PRSI Credit and the new
PRSI charge, for gross weekly earnings of €377.00:

PRSI Classes B, C and D

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

PRSI Credit Class E

For gross weekly earnings between €352.01 and €412.00 the PRSI charged is reduced by a weekly PRSI Credit of €10.00.

At gross weekly earnings of €352.01, the maximum PRSI Credit of €10.00 per week applies.

For earnings between €352.01 and €412.00, the maximum weekly PRSI Credit of €10.00, is reduced by one-sixth of earnings in excess of €352.01. There is no PRSI Credit once gross weekly earnings exceed €412.00.

PRSI exemption on low earnings/income

Employees covered under Classes A, B, C, D, E and H with reckonable weekly pay of €352.00 or less are exempt from paying PRSI for that week. However, the employer must pay their 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 €352.00 exemption limit are not entitled to an annual refund.

PRSI Class K

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

Class K also applies to the additional earned self-employed income from a trade or profession of a modified rate contributor and on any unearned income they may have. This income is liable to a 4% PRSI charge.

Members of Local Authority

Occupational pensions

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 €500, 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 €310 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:

High rate: 6.6% for people who last paid PRSI at Classes A, E and H, subject to a minimum annual payment of €500.
Low rate: 2.6% for people who last paid PRSI at Classes B, C and D, subject to a minimum annual payment of €250.
Special rate: Flat rate of €500 for people who last paid PRSI at Class S.

PRSI Contribution Rates

Class A

Community Employment participants only

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

• State Pension (Contributory)
• Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension
• Jobseeker's Benefit
• Maternity Benefit
• Adoptive Benefit
• Paternity Benefit
• Health and Safety Benefit
• Treatment Benefit
• Illness Benefit
• Invalidity Pension
• Partial Capacity Benefit 
• Occupational Injuries Benefits
• Carer's Benefit
• Guardian's Payment (Contributory)

Class J

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.

Class J benefits

• Occupational Injuries Benefit

Class E

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

• State Pension (Contributory)
• Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension
• Jobseeker's Benefit
• Maternity Benefit
• Adoptive Benefit
• Paternity Benefit
• Health and Safety Benefit
• Treatment Benefit
• Illness Benefit
• Invalidity Pension
• Partial Capacity Benefit 
• Occupational Injuries Benefits
• Carer's Benefit
• Guardian's Payment (Contributory)

 

Class B

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
• Limited Occupational Injuries Benefits
• Carer's Benefit
• Guardian's Payment (Contributory)

Class C

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
• Carer's Benefit
• Guardian's Payment (Contributory)

Class D

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
• Carer's Benefit

Class H

People within Class H

• NCOs and enlisted personnel of the Defence Forces

Class H benefits

• State Pension (Contributory)
• Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension *
• Jobseeker's Benefit
• Maternity Benefit
• Adoptive Benefit
• Paternity Benefit
• Health and Safety Benefit
• Treatment Benefit * 
• Illness Benefit
• Invalidity Pension
• Carer's Benefit *
• Guardian's Payment (Contributory)

* Only these benefits are paid during service.

Class K

People within Class K1 (*See Note below)

• 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).

*Note  - Class K1 refers to Office Holders only and does not refer to any other Class K contributions paid.

No Benefits under Class K

People within Class K9

• Modified rate contributors with self-employed earned income (from a profession or trade) and any other unearned income.
• Employees with no additional earned self-employed income but who do have unearned income only such as rental income, investment income, dividends and interest on deposits and savings.

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 aged 66 or over (including those previously liable for Class S), persons in receipt of occupational pensions (on the occupational pension income only) or people within Class K with a nil liability.

Class M benefits

• Occupational Injuries Benefits, in certain cases

Class S - No upper ceiling

People within Class S

• Self-employed people, including certain company directors and certain people with income from investments and rents and from January 2017, members of a local authority.

The minimum annual contribution for Class S is €500 for the year 2018.

Class S benefits

• State Pension (Contributory)
• Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension
• Maternity Benefit
• Adoptive Benefit
• Paternity Benefit
• Treatment Benefit (since March 2017)
• Invalidity Pension (since December 2017)
• Guardian's Payment (Contributory)

Class P

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.

Class P benefits

• Limited Jobseeker's Benefit
• Limited Illness Benefit
• Treatment Benefit