PRSI stands for Pay Related Social Insurance. A PRSI contribution is a percentage of an employee’s reckonable earnings. It is paid by employers and employees and is made up of:
- social insurance, and
- the 0.7% National Training Fund Levy*
Other levies may be added from time to time.
The PRSI system is based on “weeks of insurable employment� - in terms of both the calculation of PRSI levies and the award of social insurance contributions. These contributions are recorded to determine future entitlements to social welfare benefits. This link between contributions awarded and entitlement to benefit is referred to as the contributory principle.
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* This applies to employees on Class A or H and is paid only by the employer.
Note: A PRSI contribution is recorded where an employee works (or is rostered to work) for any part of a contribution week, regardless of when they are paid.