Advance Notice of PRSI Changes For Computer Users 2012


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Information Services
Social Welfare Services
College Road
Sligo

2012
Advance notice of PRSI changes for computer users

This notice contains rate changes in PRSI announced in the December 2011 Budget.
Changes are effective from 1 January 2012.

 

Income for PRSI purposes

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

Superannuation payments

Employee Superannuation/Pension Payments:
PRSI relief for employers on pension contributions made by employees has been fully abolished.

Employer Superannuation/Pension Payments:
Full relief continues to apply to payments made by employers to their employee's pension.

Share-based Remuneration

  • Share-based remuneration is subject to employee PRSI only, at the rate of 4%, with effect from 1 January 2011.
  • If applicable, it should be included as income when determining the appropriate subclass and when charging employee PRSI.
  • Share-based remuneration is not subject to employer PRSI. The employer PRSI element was abolished during 2011.
  • It should not be included as income when determining the appropriate subclass and when charging employer PRSI.
  • In some cases this may result in a different subclass for the employer and for the employee.
  • The employer and employee PRSI should be calculated separately and 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.

Employee's income thresholds

  • The threshold for employee PRSI remains at €352 a week.
  • Office holders pay PRSI at a rate of 4% on all income, where their income is over €5,200 per annum.
    They should be returned at Class K.
  • People with a nil liability, such as persons in receipt of occupational pensions should be returned at Class M.
  • 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.
  • For income of more than €500 a week, Subclass A1, A4, B1, C1, D1, H1, J1, or S1 should be returned.
  • PRSI Classes B, C and D will pay PRSI at 0.9% below €1,443 a week and 4% above €1,443 a week.

Employee's PRSI-Free Allowance

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

For employees paid other than weekly, alternatives to the PRSI-Free Allowance are:
Classes
A
B,C,D
Fortnightly €254 €52
Monthly €551 €113

Self-employed PRSI

The Class S rate remains at 4% and continues to be payable only on annual income of €5,000 or more. The minimum annual contribution for Class S remains at €253.

Employer's PRSI rates

There are no changes in employer's PRSI rates.

Income bands and subclasses

Subclasses
A0
A6, A8, B0, C0, D0 & H0
Weekly
€38 to €352
up to and including €352
Fortnightly
€76 to €704 ( see note below)
up to and including €704
Monthly
€165 to €1,525 ( see note below)
up to and including €1,525

Note: This threshold only applies to Class A employees, whose total earnings/income, including if appropriate share-based remuneration, in each week of the fortnight or month are at least €38.

 

Subclass
AX
Weekly
€352.01 to €356
Fortnightly
€704.01 to €712
Monthly
€1,525.01 to €1,543

 

Subclass
AL
Weekly
€356.01 to €500
Fortnightly
€712.01 to €1,000
Monthly
€1,543.01 to €2,167

 

Subclasses
A7, BX, CX, DX and HX
A9
JO, M, and SO
Weekly
€352.01 to €500
more than €352
up to and including €500
Fortnightly
€704.01 to €1,000
more than €704
up to and including €1,000
Monthly
€1,525.01 to €2,167
more than €1,525
up to and including €2,167

 

Subclass
A1 and A4
Weekly
more than €500
Fortnightly
more than €1,000
Monthly
more than €2,167

 

Subclass
K1
Weekly
more than €100
Fortnightly
more than €200
Monthly
more than €433

This advance notice of PRSI changes for computer users is available on our website at 'www.welfare.ie' or through our PRSI mailing list. If you wish to add your name to our list, please register at 'www.welfare.ie'.

 

PRSI contribution rates from 1 January 2012

Private And Some Public Sector Employments
Non-Cumulative Weekly Earnings Band
(Including if appropriate shared-based remuneration)
PRSI Subclasses How Much Of Weekly Earnings
(Including if appropriate shared-based remuneration)
Employee %
(Including if appropriate shared-based remuneration)
Employer %
(Excluding shared-based remuneration)
Employee + Employer %
Up to €37.99
ALL
0
0.50
0.50
€38 - €352
AO
ALL
0
4.25
4.25
€352.01 - €356
AX
First €127
0
4.25
4.25
AX
Balance
4.00
4.25
8.25
€356.01 - €500
AL
First €127
0
10.75
10.75
AL
Balance
4.00
10.75
14.75
More than €500
A1
First €127
0
10.75
10.75
A1
Balance
4.00
10.75
14.75

 

Use the following subclasses (A6, A7 and A4) only for approved employees under the Employer's PRSI Exemption Scheme and Employer Job (PRSI) Incentive Scheme.
Non-Cumulative Weekly Earnings Band
(Including if appropriate shared-based remuneration)
PRSI Subclasses How Much Of Weekly Earnings
(Including if appropriate shared-based remuneration)
Employee %
(Including if appropriate shared-based remuneration)
Employer %
(Excluding shared-based remuneration)
Employee + Employer %
Up to €352
A6
ALL
0
0
0
€352.01 - €500
A7
First €127
0
0
0
A7
Balance
4.00
0
4.00
More than €500
A4
First €127
0
0
0
A4
Balance
4.00
0
4.00

 

Use the following subclasses for Community Employment participants.
Non-Cumulative Weekly Earnings Band
(Including if appropriate shared-based remuneration)
PRSI Subclasses How Much Of Weekly Earnings
(Including if appropriate shared-based remuneration)
Employee %
(Including if appropriate shared-based remuneration)
Employer %
(Excluding shared-based remuneration)
Employee + Employer %
Up to €352
A8
ALL
0
0.50
0.50
More than €352
A9
First €127
0
0.50
0.50
A9
Balance
4.00
0.50
4.50

 

Class J normally relates to people with reckonable earnings of less than €38 a week (from all employments). However, the following employees are insurable at Class J, regardless of earnings: employees aged 66 or over and people in subsidiary employment.
Non-Cumulative Weekly Earnings Band
(Including if appropriate shared-based remuneration)
PRSI Subclasses How Much Of Weekly Earnings
(Including if appropriate shared-based remuneration)
Employee %
(Including if appropriate shared-based remuneration)
Employer %
(Excluding shared-based remuneration)
Employee + Employer %
Up to €500
J0
ALL
0
0.50
0.50
More than €500
J1
ALL
0
0.50
0.50
FÁS Allowance
J9
ALL
0
0.50
0.50

 

Office Holders
Non-Cumulative Weekly Earnings Band
(Including if appropriate shared-based remuneration)
PRSI Subclasses How Much Of Weekly Earnings
(Including if appropriate shared-based remuneration)
Employee %
(Including if appropriate shared-based remuneration)
Employer %
(Excluding shared-based remuneration)
Employee + Employer %
Up to €100
M
ALL
0
0
0
More than €100
K1
ALL
4.00
0
4.00

Class M relates to people with a nil contribution liability (such as employees under age 16 and persons in receipt of occupational pensions).

Occupational Pensions
Non-Cumulative Weekly Earnings Band
(Including if appropriate shared-based remuneration)
PRSI Subclasses How Much Of Weekly Earnings
(Including if appropriate shared-based remuneration)
Employee %
(Including if appropriate shared-based remuneration)
Employer %
(Excluding shared-based remuneration)
Employee + Employer %
All Income
M
ALL
0
0
0

 

Public Sector Employments - PRSI Class B
Non-Cumulative Weekly Earnings Band
(Including if appropriate shared-based remuneration)
PRSI Subclasses How Much Of Weekly Earnings
(Including if appropriate shared-based remuneration)
Employee %
(Including if appropriate shared-based remuneration)
Employer %
(Excluding shared-based remuneration)
Employee + Employer %
Up to €352
B0
ALL
0
2.01
2.01
€352.01 - €500
BX
First €26
0
2.01
2.01
BX
Balance
0.90
2.01
2.91
More than €500
B1
First €26
0
2.01
2.01
B1
€26.01 - €1,443
0.90
2.01
2.91
B1
Balance
4.00
2.01
6.01

 

Public Sector Employments - PRSI Class C
Non-Cumulative Weekly Earnings Band
(Including if appropriate shared-based remuneration)
PRSI Subclasses How Much Of Weekly Earnings
(Including if appropriate shared-based remuneration)
Employee %
(Including if appropriate shared-based remuneration)
Employer %
(Excluding shared-based remuneration)
Employee + Employer %
Up to €352
C0
ALL
0
1.85
1.85
€352.01 - €500
CX
First €26
0
1.85
1.85
CX
Balance
0.90
1.85
2.75
More than €500
C1
First €26
0
1.85
1.85
C1
€26.01 - €1,443
0.90
1.85
2.75
C1
Balance
4.00
1.85
5.85

 

Public Sector Employments - PRSI Class D
Non-Cumulative Weekly Earnings Band
(Including if appropriate shared-based remuneration)
PRSI Subclasses How Much Of Weekly Earnings
(Including if appropriate shared-based remuneration)
Employee %
(Including if appropriate shared-based remuneration)
Employer %
(Excluding shared-based remuneration)
Employee + Employer %
Up to €352
D0
ALL
0
2.35
2.35
€352.01 - €500
DX
First €26
0
2.35
2.35
DX
Balance
0.90
2.35
3.25
More than €500
D1
First €26
0
2.35
2.35
D1
€26.01 - €1,443
0.90
2.35
3.25
D1
Balance
4.00
2.35
6.35

 

Public Sector Employments - PRSI Class H
Non-Cumulative Weekly Earnings Band
(Including if appropriate shared-based remuneration)
PRSI Subclasses How Much Of Weekly Earnings
(Including if appropriate shared-based remuneration)
Employee %
(Including if appropriate shared-based remuneration)
Employer %
(Excluding shared-based remuneration)
Employee + Employer %
Up to €352
H0
ALL
0
10.05
10.05
€352.01 - €500
HX
First €127
0
10.05
10.05
HX
Balance
3.90
10.05
13.95
More than €500
H1
First €127
0
10.05
10.05
H1
Balance
3.90
10.05
13.95

 

Self-employed (on PAYE system only) - PRSI Class S
Non-Cumulative Weekly Earnings Band
(Including if appropriate shared-based remuneration)
PRSI Subclasses How Much Of Weekly Earnings
(Including if appropriate shared-based remuneration)
Employee %
(Including if appropriate shared-based remuneration)
Employer %
(Excluding sharedbased remuneration)
Employee + Employer %
Up to €500
S0
ALL
4.00
0
4.00
More than €500
S1
ALL
4.00
0
4.00

Important points to note

  • PRSI relief for employers on pension contributions made by employees has been fully abolished. This does not apply to Civil and Public Service employers who do not pay employer PRSI on the pension levy paid by their employees.
  • PRSI relief on pension contributions paid by employers remains unchanged.
  • 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 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 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.
  • There is no annual earnings ceiling for PRSI for employees.
  • 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.
  • For income of more than €500 a week, subclasses A1, A4, B1, C1, D1, H1, J1 and S1, as appropriate, should be returned.
  • Subclass A4 applies to those who were previously insurable under Subclass A5.
  • Class A employees earning between €38 and €352 inclusive a week should be recorded under Subclass AO.
  • Class A employees earning between €352.01 and €356 a week should be recorded under Subclass AX.
  • Class A employees earning between €356.01 and €500 a week should be recorded under Subclass AL.
  • Community Employment participants earning €352 or less a week should be recorded under Subclass A8. Subclass A9 applies when earnings are more than €352 a week.
  • The Class J contribution normally relates to people with reckonable earnings of less than €38 a week (from all jobs). However, a small number of employees are insurable at Class J, regardless of earnings - for example, employees over age 66 and people in subsidiary employment.
  • For employees taken on under the Employer's PRSI Exemption Scheme and the Employer Job (PRSI) Incentive Scheme:
    • Subclass A6 is applied to employees earning €352 or less a week - normally insurable at Subclass AO.
    • Subclass A7 is for those earning between €352.01 and €500 inclusive a week - normally insurable at Subclass AX or AL.
    • Subclass A4 applies for those earning over €500 a week. This applies to employees who would normally be insurable at Subclass A1 and exempted employees who were previously insured at Class A5.
  • 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'.
  • You can download PRSI information booklets from our website at 'www.welfare.ie'.

When completing a P35, P60 or P45, do not include any class or subclass of PRSI that did not apply during the year.

Last modified:09/12/2011
 

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