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.
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:
|
Calculate the PRSI Credit: |
|
|
|
|
1. |
Maximum PRSI Credit |
€12.00 |
|
One-sixth of earnings in excess of €352.01 |
|
|
(377.00 - 352.01 = 24.99/6) ) |
(€4.17) |
|
Reduced PRSI Credit |
€7.83 |
|
|
|
2. |
Calculate the PRSI charge @ 4% |
€15.08 |
|
Deduct the reduced PRSI Credit from the 4% |
|
|
PRSI charge |
€7.83 |
|
|
|
3. |
New 2018 weekly PRSI charge |
€7.25 |
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.
Class K may also apply to the unearned income of employed contributors and occupational pensioners (whether that pension arises from that person’s own employment or the employment of their spouse or civil partner) aged under 66 years where this is the only additional income. This means that unearned income such as rental income, investment income, dividends and interest on deposits and savings may be liable to a 4% PRSI charge. For further details see ‘Information on the Extension of PRSI Liability to Unearned Income’ on welfare.ie.
Members of Local Authority
From January 2017, members of a local authority will no longer be liable to pay Class K PRSI contributions. Members, aged under 66, will pay a Class S contribution.
Class M applies to people with a nil contribution liability such as, employees
under age 16, people aged 66 and over (including those previously liable for
Class S), persons in receipt of occupational pensions (on their Occupational
Pensions only) and public office holders with a weekly income of less than €100
a week.
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: |
Low rate: |
Special rate: |
Benefits covered: |
Yes |
|
Yes |
State Pension (Contributory) |
Yes |
Yes |
Yes |
Widow’s, Widower’s or Surviving Civil
Partner’s (Contributory) Pension |
Yes |
Yes |
Yes |
Guardian’s Payment (Contributory) |
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
Subclass A0 Weekly income band
|
How much of weekly income
|
All income Employee
(* See Note 1)
|
All income Employer
|
€38 - €352 |
All |
Nil |
8.60% |
---|
Subclass AX Weekly income band
|
How much of weekly income
|
All income Employee (* See Note 1) |
All income Employer
|
|
All |
4.00% |
8.60% |
---|
Subclass AL Weekly income band
|
How much of weekly income
|
All income Employee (* See Note 1)
|
All income Employer
|
€376.01 - €424 (* See Note 2) |
All |
4.00% |
10.85% |
Subclass A1 Weekly income band
|
How much of weekly income
|
All income Employee (* See Note 1)
|
All income Employer
|
More than €424 |
All |
4.00% |
10.85% |
Community Employment participants only
Subclass A8 Weekly income band
|
How much of weekly income
|
All income Employee (* See Note 1)
|
All income Employer
|
Up to €352 inclusive |
All |
Nil |
0.50% |
---|
Subclass A9 Weekly income band
|
How much of weekly income
|
All income Employee (* See Note 1)
|
All income Employer
|
More than €352
(* See Note 2) |
All |
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
- 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
Subclass J0 Weekly income band
|
How much of weekly income
|
All income Employee (* See Note 1)
|
All income Employer
|
Up to €500 |
All |
Nil |
0.50% |
---|
Subclass J1 Weekly income band
|
How much of weekly income
|
All income Employee (* See Note 1)
|
All income Employer
|
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.
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
(* See Note 3) |
All |
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
- 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
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 |
All |
0.90% |
2.01% |
---|
Subclass B1 Weekly income band |
How much of weekly income |
All income Employee |
All income Employer |
More than €500 |
First €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
- Limited Occupational Injuries Benefits
- Carer's Benefit
- Guardian's Payment (Contributory)
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 |
All |
0.90% |
1.85% |
---|
Subclass C1 Weekly income band |
How much of weekly income |
All income Employee |
All income Employer |
More than €500 |
First €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
- Carer's Benefit
- Guardian's Payment (Contributory)
Class D
Subclass D0 Weekly income band
|
How much of weekly income
|
All income Employee (* See Note 1)
|
All income Employer
|
Up to €352 |
All |
Nil |
2.35% |
---|
Subclass DX Weekly income band
|
How much of weekly income
|
All income Employee (* See Note 1)
|
All income Employer
|
€352.01 - €500 |
All |
0.90% |
2.35% |
---|
Subclass D1 Weekly pay Band |
How much of Weekly Pay |
All income Employee |
All income Employer |
More than €500 |
First €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
- 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 |
10.15% |
---|
Subclass HX
Weekly income band |
How much of weekly income |
All income Employee |
All income Employer |
€352.01 - €424
(*See Note 2) |
All |
3.90% |
10.15% |
Subclass H1 Weekly income band |
How much of weekly income |
All income Employee |
All income Employer |
More than €424 |
All |
3.90% |
10.15% |
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)
Class K
Class K1 Weekly pay Band |
How much of Weekly Pay |
All Income Employee |
All Income Employer |
Up to €100 (No contribution payable. Record under Class M) |
|
Nil |
Nil |
More than €100 |
All |
4.00% |
Nil |
---|
- 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
Class K9 Weekly pay Band |
How much of Weekly Pay |
All Income Employee |
All Income Employer |
Up to €100 (No contribution payable. Record under Class M) |
|
Nil |
Nil |
More than €100 |
All |
4.00% |
Nil |
---|
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
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 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
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.
Class P benefits
- Limited Jobseeker's Benefit
- Limited Illness Benefit
- Treatment Benefit