PRSI and Levies - Summary of Changes


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Pension Contributions

PRSI relief on pension contributions paid by employees has been fully abolished.

The 2011 Budget provided for changes in the way in which PRSI liability operates in relation to employee pension contributions.

  • Up until 1 January 2011, PRSI (in respect of both the employee and employer elements) was deducted on gross earnings less any employee occupational pension contributions. 
  • The 2011 Budget (i) abolished PRSI relief in the case of the employee element of PRSI in relation to employee pension contributions and (ii) provided for the abolition of half of the PRSI relief in the case of the employer element of PRSI in relation to employee pension contributions.  

The relief from employer PRSI on employee pension contributions is now fully abolished. 

Full PRSI relief on contributions made by employers to their employees’ pensions, remains.

Levies

  • The National Training Fund Levy, which is paid alongside PRSI, remains at 0.7% (0.35% on the lower 4.25% rate of employer PRSI).

  

Employee PRSI Contributions

Item 

Change 2012

No Employee

None

Employee PRSI Threshold €352

None 

Employee Rate – 4%
(Classes A and H)
 

None

Employer PRSI

Item

Change 2012

Employer Threshold €356

None

Employer Rate (High) 10.75%
(Low) 4.25%

None
None

Self-Employed PRSI

Item

Change 2012

Class S rate - 4% 

None

Minimum Contribution - €253 pa

None

Last modified:06/12/2011
 

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