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 on page 10, A and 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 €352 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 €500 per week., including the 2% Health Contribution.
The amount of PRSI due in this example is:
Employee: PRSI = 4% €22.80
Employer: 10.75% of €570 = €61.27
The rates of PRSI and income thresholds used in these examples apply to 2014 and may change depending on the relevant year(s).
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 €352 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. For more information on this, log on to http://www.welfare.ie/en/Pages/State-Pension- Contributory.aspx.
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 Widow’s, Widower’s or Surviving Civil Partner’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 or surviving civil partner’s pension may also be secured on the basis of the spouse’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.