To work out the rate of
PRSI from the employee (EE) and employer, (ER) we divide the gross pay by the number of contribution weeks covered by the employee's working pattern.
Using the example above,
B each earn €570 per week.
A's earnings are halved as their work pattern spans two contribution weeks. €570 divided by 2 = €285
PRSI at subclass AO applies to gross earnings of up to and including €339 a week.
The amount of
PRSI due in this case is:
Employee: €285 at Subclass AO = Nil
Employer: 8.5% of €285 = €24.22
The employee does not pay PRSI.
B's work pattern coincides with the contribution week, so the earnings are not divided by two.
PRSI at subclass A1 applies to gross earnings over €480 per week, including the 2% Health Contribution.
The amount of
PRSI due in this example is:
- Health Contribution (2% of €127) = €2.54
- Balance (6% of €443) = €26.58
- Total PRSI = €29.12
The rates of
PRSI and income thresholds used in these examples apply to 2007 and may change.
All employees within Class A
PRSI (whether or not they pay
PRSI) may still qualify for Class A social insurance benefits.
- Employee A does not pay any
PRSI, as the earnings are under €339 for each contribution week, but will have 52 contributions on their social insurance record at the end of the year.
- Employee B pays a higher rate of Class A
PRSI, but will have 26 contributions on their social insurance record at the end of the year.
- Both A and B are still covered for the same benefits.
Your pension entitlements may be affected if you have less than 52
PRSI contributions every year. However, it must be noted that the effect on entitlement to the State Pension (Contributory) is small. Where a person, during their weeks off work, is caring for a child aged 12 years or under, or another requiring full-time care and attention, there is scope for the award of homemakers credits which will secure pension entitlement.
In terms of coverage for the Widowâ◊™s or Widowerâ◊™s (Contributory) Pension, depending on the years in the work-sharing cycle that the spouse dies, entitlement could be slightly reduced. However, a widow/ers pension may also be secure on the basis of the spouseâ◊™s contribution record.
Finally, in relation to Invalidity Pension entitlement, while entitlement might be affected in a particular year, the award of credited contributions in respect of Illness Benefit would accrue entitlement to Invalidity Pension at a later stage.