Rates of Payment 2016

The rates of PRSI given in the following tables are applicable from 1 January 2016 and include the Social Insurance Contribution, which applies to all income in 2016.

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.
For gross earnings between €352.01 and €424.00 in a week, the 4% PRSI charge will be reduced by a new 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 new 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 2016 weekly PRSI charge	€7.25

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% on the balance.

PRSI Credit Class E

For gross weekly earnings between €352.01 and €412.00 the PRSI charged will be 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.

Public Office holders

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.

Occupational pensions

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.

PRSI Class K

From 1 January 2013, 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.

From 1 January 2014, 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.

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
Low rate: 2.6% for people who last paid PRSI at Classes B, C and D
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	8.50%

 

Subclass AX

Weekly income band	How much of weekly income	All income Employee (* See Note 1)	All income Employer
€352.01 - €376 (* See Note 2)	All	4.00%	8.50%

 

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%	10.75%

 

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%	10.75%

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

• 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)
• Treatment Benefit
• Occupational Injuries Benefits
• Carer's Benefit

 

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 (*See Note 3)	All	Nil	6.87%

 

Subclass E1

Weekly income band	How much of weekly income	All income Employee	All income Employer
More than €352	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

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

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	10.05%

 

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%	10.05%

 

Subclass H1

Weekly income band	How much of weekly income	All income Employee	All income Employer
More than €424	All	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)
• Treatment Benefit * 
• Carer's Benefit *

* Only these benefits are paid during service.

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 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

 

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.

The minimum annual contribution for Class S is €500 for the year 2016.

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

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

 

*Note 1: Share-based remuneration may, in certain circumstances, be subject to employee PRSI. Employers PRSI is not chargeable on share based remuneration.

 

*Note 2: A tapered employee PRSI Credit of €12 per week applies on earnings up to €424.

 

*Note 3: A tapered employee PRSI Credit of €10 per week applies on earnings up to €412.