Various PRSI changes were announced in the December 2010 Budget.
Employee’s annual earnings ceiling
annual earnings ceiling has been abolished. PRSI is payable on all income.
Employee income thresholds
- The threshold for employee PRSI remains at €352 a week.
Health Contribution rates
- The Health Contribution has been abolished.
As a result of the Budget changes, subclasses, such as, A2, B2, C2, D2, H2, J2 and S2 no longer exist but have been retained in this guide so that significant changes to payroll systems are not required in moving from 2010 to 2011.
No need to change the PRSI subclass to account for the abolition of the Health Contribution. For example, those paying subclasses A1 or A2 in 2010 will continue to pay the same subclass in 2011 (assuming their wages remain the same).
PRSI classes B, C and D will pay PRSI at 0.9% up to €1,443 a week and 4% above €1,443 a week.
The Class S rate has increased from 3% to 4%.