Advance Notice of PRSI Changes For Computer Users April 2009 (Supplementary Budget)


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Information Services
Department of Social and Family Affairs
Social Welfare Services Office
College Road
Sligo

2009
ADVANCE NOTICE OF PRSI CHANGES FOR COMPUTER USERS

This notice contains rate changes announced in the April 2009 Supplementary Budget. Changes are effective from 1 May 2009.

Employee's annual earnings ceiling

The employee's annual earnings ceiling (above which they pay no social insurance contributions) has increased from €52,000 to €75,036.

Employee's income thresholds

  • The threshold for employee PRSI remains at €352 a week.
  • The Health Contribution rates have increased from 2% to 4% and from 2.5% to 5%.
  • The threshold for payment of the 4% Health Contribution is €500 a week.
  • The threshold for payment of the 5% Health Contribution is €1,443 a week (equivalent to €2,886 a fortnight and to €6,253 a month).
  • The annual earnings threshold for the Health Contribution remains at €26,000.

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 per week and at €26 per week for all employees in Classes B, C and D.

For employees paid other than weekly, alternatives to the PRSI-Free Allowance are:

PRSI-Free Allowance for Employees paid other than Weekly
Classes A B,C,D
Fortnightly €254 €52
Monthly €551 €113

 

Self-employed PRSI

The minimum annual contribution for Class S remains at €253.

Earnings bands and subclasses

 

Subclasses

A0

A6, A8, B0, C0, D0 & H0

Weekly

€38 to € 352

€352 or below

Fortnightly

€76 (see note) to €704

€704 or below

Monthly

€165 (see note) to €1,525

€1,525 or below

Note: This threshold only applies to Class A employees, whose total earnings 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

greater than €352

€500 or below

Fortnightly

€704.01 to €1,000

greater than €704

€1,000 or below

Monthly

€1,525.01 to €2,167

greater than €1,525

€2,167 or below



Subclasses

A1, A2, A4 and A5

Weekly

over €500

Fortnightly

over €1,000

Monthly

over €2,167


 

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 May 2009

 

Private And Some Public Sector Employments
Key to code:EE: Employee, ER: Employer
Non Cumulative Weekly Earnings Band PRSI Subclasses How Much Of Weekly Earnings Cumulative Earnings Ceilings
First €75,036 Over €75,036
EE % ER % EE + ER % EE % ER % EE + ER %
Up to €37.99
J0*
ALL
0
0.50
0.50
0
0.50
0.50
€38 - €352
AO
ALL
0
8.50
8.50
0
8.50
8.50
€352.01 - €356
AX
First €127
0
8.50
8.50
0
8.50
8.50
AX
Balance
4.00
8.50
12.50
0
8.50
8.50
€356.01 - €500
AL
First €127
0
10.75
10.75
0
10.75
10.75
AL
Balance
4.00
10.75
14.75
0
10.75
10.75
More than €500
A1
First €127
4.00
10.75
14.75
4.00
10.75
14.75
A1
€127.01 to €1,443
8.00
10.75
18.75
4.00
10.75
14.75
A1
Balance
9.00
10.75
19.75
5.00
10.75
15.75
A2
First €127
0
10.75
10.75
0
10.75
10.75
A2
Balance
4.00
10.75
14.75
0
10.75
10.75

 

 

 

Use the following subclasses (A6, A7, A4 and A5) only for approved Employees under the Employer's PRSI Exemption Scheme.
Key to code:EE: Employee, ER: Employer
Non Cumulative Weekly Earnings Band PRSI Subclasses How Much Of Weekly Earnings Cumulative Earnings Ceilings
First €75,036 Over €75,036
EE % ER % EE + ER % EE % ER % EE + ER %
Up to €352
A6
ALL
0
0
0
0
0
0
€352.01 - €500
A7
First €127
0
0
0
0
0
0
A7
Balance
4.00
0
4.00
0
0
0
More than €500
A4
First €127
4.00
0
4.00
4.00
0
4.00
A4
€127.01 to €1,443
8.00
0
8.00
4.00
0
4.00
A4
Balance
9.00
0
9.00
5.00
0
5.00
A5
First €127
0
0
0
0
0
0
A5
Balance
4.00
0
4
0
0
0

 

 

 

Use the following subclasses for Community Employment participants.
Key to code:EE: Employee, ER: Employer
Non Cumulative Weekly Earnings Band PRSI Subclasses How Much Of Weekly Earnings Cumulative Earnings Ceilings
First €75,036 Over €75,036
EE % ER % EE + ER % EE % ER % EE + ER %
Up to €352
A8
ALL
0
0.50
0.50
0
0.50
0.50
More than €352
A9
First €127
0
0.50
0.50
0
0.50
0.50
A9
Balance
4.00
0.50
4.50
0
0.50
0.50

 

 

Class J normally relates to people with reckonable earnings of less than €38 per 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.
Key to code:EE: Employee, ER: Employer
Non Cumulative Weekly Earnings Band PRSI Subclasses How Much Of Weekly Earnings Cumulative Earnings Ceilings
First €75,036 Over €75,036
EE % ER % EE + ER % EE % ER % EE + ER %
Up to €500
J0
ALL
0
0.50
0.50
0
0.50
0.50
More than €500
J1
First €1,443
4.00
0.50
4.50
4.00
0.50
4.50
J1
Balance
5.00
0.50
5.50
5.00
0.50
5.50
J2
All
0
0.50
0.50
0
0.50
0.50
FÁS Allowance
J9
ALL
0
0.50
0.50
Training in FÁS training centres.

 

 

 

Occupational Pensions
Key to code:EE: Employee, ER: Employer
Non Cumulative Weekly Earnings Band PRSI Subclasses How Much Of Weekly Earnings Cumulative Earnings Ceilings
First €75,036 Over €75,036
EE % ER % EE + ER % EE % ER % EE + ER %
More than €500
K1
First €1,443
4.00
0
4.00
4.00
0
4.00
K1
Balance
5.00
0
5.00
5.00
0
5.00
ALL
M
All
0
0
0
0
0
0

CLASS M: This class should be used where there is a NIL liability, that is employees under 16 years of age, people within Class K with a NIL liability, such as persons aged 70 or over, medical card holders, widows or widowers, etc.

 

 

 

Public Sector Employments - PRSI Class B
Key to code:EE: Employee, ER: Employer
Non Cumulative Weekly Earnings Band PRSI Subclasses How Much Of Weekly Earnings Cumulative Earnings Ceilings
First €75,036 Over €75,036
EE % ER % EE + ER % EE % ER % EE + ER %
Up to €352
B0
ALL
0
2.01
2.01
0
2.01
2.01
€352.01 - €500
BX
First €26
0
2.01
2.01
0
2.01
2.01
BX
Balance
0.90
2.01
2.91
0
2.01
2.01
More than €500
B1
First €26
4.00
2.01
6.01
4.00
2.01
6.01
B1
€26.01 to €1,443
4.90
2.01
6.91
4.00
2.01
6.01
B1
Balance
5.90
2.01
7.91
5.00
2.01
7.01
B2
First €26
0
2.01
2.01
0
2.01
2.01
B2
Balance
0.90
2.01
2.91
0
2.01
2.01

 

 

 

Public Sector Employments - PRSI Class C
Key to code:EE: Employee, ER: Employer
Non Cumulative Weekly Earnings Band PRSI Subclasses How Much Of Weekly Earnings Cumulative Earnings Ceilings
First €75,036 Over €75,036
EE % ER % EE + ER % EE % ER % EE + ER %
Up to €352
C0
ALL
0
1.85
1.85
0
1.85
1.85
€352.01 - €500
CX
First €26
0
1.85
1.85
0
1.85
1.85
CX
Balance
0.90
1.85
2.75
0
1.85
1.85
More than €500
C1
First €26
4.00
1.85
5.85
4.00
1.85
5.85
C1
€26.01 to €1,443
4.90
1.85
6.75
4.00
1.85
5.85
C1
Balance
5.90
1.85
7.75
5.00
1.85
6.85
C2
First €26
0
1.85
1.85
0
1.85
1.85
C2
Balance
0.90
1.85
2.75
0
1.85
1.85

 

 

 

Public Sector Employments - PRSI Class D
Key to code:EE: Employee, ER: Employer
Non Cumulative Weekly Earnings Band PRSI Subclasses How Much Of Weekly Earnings Cumulative Earnings Ceilings
First €75,036 Over €75,036
EE % ER % EE + ER % EE % ER % EE + ER %
Up to €352
D0
ALL
0
2.35
2.35
0
2.35
2.35
€352.01 - €500
DX
First €26
0
2.35
2.35
0
2.35
2.35
DX
Balance
0.90
2.35
3.25
0
2.35
2.35
More than €500
D1
First €26
4.00
2.35
6.35
4.00
2.35
6.35
D1
€26.01 to €1,443
4.90
2.35
7.25
4.00
2.35
6.35
D1
Balance
5.90
2.35
8.25
5.00
2.35
7.35
D2
First €26
0
2.35
2.35
0
2.35
2.35
D2
Balance
0.90
2.35
3.25
0
2.35
2.35

 

 

 

Public Sector Employments - PRSI Class H
Key to code:EE: Employee, ER: Employer
Non Cumulative Weekly Earnings Band PRSI Subclasses How Much Of Weekly Earnings Cumulative Earnings Ceilings
First €75,036 Over €75,036
EE % ER % EE + ER % EE % ER % EE + ER %
Up to €352
H0
ALL
0
10.05
10.05
0
10.05
10.05
€352.01 - €500
HX
First €127
0
10.05
10.05
0
10.05
10.05
HX
Balance
3.90
10.05
13.95
0
10.05
10.05
More than €500
H1
First €127
4.00
10.05
10.05
4.00
10.05
14.05
H1
€26.01 to €1,443
7.90
10.05
17.95
4.00
10.05
14.05
H1
Balance
8.90
10.05
18.95
5.00
10.05
15.05
H2
First €127
0
10.05
10.05
0
10.05
10.05
H2
Balance
3.90
10.05
13.95
0
10.05
10.05

 

 

 

Self-Employed (On PAYE System Only)
Key to code:EE: Employee, ER: Employer
Non Cumulative Weekly Earnings Band PRSI Subclasses How Much Of Weekly Earnings Cumulative Earnings Ceilings
First €75,036 Over €75,036
EE % ER % EE + ER % EE % ER % EE + ER %
Up to €500
S0
ALL
3.00
0
3.00
3.00
0
3.00
More than €500
S1
All up to - €1,443
7.00
0
7.00
7.00
0
7.00
S1
Balance
8.00
0
8.00
8.00
0
8.00
S2
ALL
3.00
0
3.00
3.00
0
3.00

Important points to note

  • The annual earnings ceiling for PRSI has from €52,000 to €75,036 for employees in Classes A, B, C, D and H, effective from 1 May 2009.
  • The Health Contribution rates have increased from 2% to 4% and from 2.5% to 5%.
  • The threshold for payment of the 4% Health Contribution is €500 a week.
  • The threshold for payment of the 5% Health Contribution is €1,443 a week (equivalent to €2,886 a fortnight and to €6,253 a month).
  • 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.
  • Medical card holders and people who get a Widow's or Widower's Pension, a One- Parent Family Payment or Deserted Wife's Benefit/Allowance do not have to pay any Health Contribution (4% or 5%) in any week where the reckonable earnings are more than €500. Where earnings are more than €500, record under Subclass 2 - that is, A2, B2, C2, D2, H2, J2, S2 or Class M (for people within Class K), as appropriate.
  • People aged 70 or over do not pay any Health Contribution (4% or 5%), regardless of whether or not they have a medical card.
  • 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, 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. In any week where earnings exceed €500, Subclass A4 applies to exempted employees who would normally be insurable at Subclass A1. Subclass A5 applies to those who would normally be insurable at Subclass A2 (i.e. medical card holders, and people getting a Widow's or Widower's Pension, a One Parent Family Payment or Deserted Wife's Benefit/Allowance).
  • 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

This leaflet is intended as a guide only, and is not a legal interpretation. Edition: April 2009

Last modified:14/05/2009