Rates of PRSI Contributions for Non PAYE Employees 2012


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Persons in industrial, commercial and service type employment, employed under a contract of service
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
ALL
4.00
4.25
8.25
€356.01 - €500
AL
ALL
4.00
10.75
14.75
More than €500
A1
ALL
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
ALL
4.00
0
4.00
More than €500
A4
ALL
4.00
0
4.00

 

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

 

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

Changes to Employee PRSI

There will be no impact on employees with weekly earnings which do not exceed €352.00.

For employees whose weekly earnings exceed €352, the weekly PRSI-free allowance available to employees who pay PRSI, is being abolished. The weekly PRSI-free allowance of €127 applies to Classes A, with weekly earnings of more than €352 remains at €127.

Pension Contributions

PRSI is fully chargeable on payments by private sector employees in respect of:

  • Superannuation contributions
  • Permanent health benefit schemes (including income continuance schemes)
  • Revenue approved schemes established under irrevocable trusts, overseas pension schemes and other Revenue exempt approved schemes
  • Personal Retirement Savings Account
  • Deductions in respect of Revenue approved retirement funds

Important points to note

  • There is no PRSI relief on pension contributions made by employees.
  • PRSI relief on pension contributions paid by employers remains unchanged.
  • Employee PRSI only is payable on share-based remuneration. There is no employer PRSI chargeable on share-based remuneration. The obligation to deduct and remit PRSI payable should be deducted by the employer through payroll along with other PRSI liabilities. Different arrangements apply in the case of PRSI on gains from the exercise of certain share options.
  • 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 earning ceiling for PRSI for employees.
  • 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.
  • For income of more than €500 a week, subclass A1, A4, B1, C1, D1, H1, J1 and S1, as appropriate should be returned.
  • 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.
  • You can download PRSI information booklets from our website at www.welfare.ie.
Last modified:13/12/2012
 

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