Supplementary Budget April 2009-Summary of Pay Related Social Insurance (PRSI) Changes

Employees Annual Earnings Ceiling

• The employee’s annual earnings ceiling has increased from €52,000 to €75,036.

Employees Income Thresholds and Health Levy

• The threshold for employee PRSI remains at €352. There is no change in rates.
• The Health Levy rates have increased from 2% to 4% and from 2.5% to 5%
• The threshold for payment of the lower rate of the Health Levy remains at €500 per week
• The threshold for payment of the higher rate of the Health Levy has been lowered from €100,100 to €75,036

Employer PRSI Rates

• There is no change in the Employer PRSI rates
• The National Training Fund Levy which is paid alongside PRSI, remains at 0.7%

Self-Employed PRSI

• The minimum annual contribution for Class S remains at €253
• The Self-Employed PRSI rate of 3% remains.
• The increase in the Health Levy rates and lowering of the threshold also apply to Class S.