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Pay-Related Social Insurance (PRSI)

The rates of PRSI given in the following tables are applicable from 1 January to 31 December 2008 and include the Social Insurance Contribution and the Health Contribution (2%) which applies to income up to �100,100. There is no change to the additional 0.5% health contribution on earnings exceeding �1,925 a week (equivalent to �3,850 a fortnight and to �8,342 a month).

The employee's portion of the Social Insurance Contribution is paid on reckonable pay up to a ceiling of �50,700 in 2008. The employer's portion continues to be paid on all the reckonable earnings of each employee. The employee pays the Health Contribution on all reckonable earnings under Subclasses A1, J1, B1, C1, D1, H1, K1 and S1.

PRSI exemption on low earnings

Employees covered under Classes A, B, C, D, E and H with reckonable weekly pay of �352 or less are exempt from paying PRSI for that week. However, the employer must pay his or her share of PRSI as normal. This will not affect employees' entitlement to benefits and pensions. Employees whose weekly pay fluctuates above and below the �352 exemption limit are not entitled to an annual refund.

Employee's PRSI-Free Allowance

The PRSI-Free Allowance remains at �127 per week for employees in Classes A and H with weekly earnings of more than �352 and at �26 per week for all employees in Classes B, C and D.

This allowance does not apply to the Health Contribution nor to the employer's share of PRSI. The allowance only applies for weeks of insurable employment in which PRSI is paid. Remember that this allowance does not affect the gross reckonable weekly pay thresholds in deciding the appropriate contribution subclass.

Recipients of the Widow's or Widower's Pension or the One-Parent Family Payment

Men and women receiving a Social Welfare Widow's or Widower's Pension, a Widow's or Widower's Pension acquired under the social security legislation of another country covered by EC Regulations, a Deserted Wife's Benefit or Allowance or the One-Parent Family Payment do not have to pay any Health Contribution. Medical card holders and everyone aged 70 or over are also exempt.

Contributions for self-employed people

Self-employed people with a total income of �3,174 or more in the 2008 tax year pay Class S social insurance contributions. The contributions are paid on a person's gross income less capital allowances and allowable superannuation. The arrangements for paying self-employed contributions are described on the page across.

  • Those who pay their tax directly to the Collector-General will pay their Social Insurance Contribution and Health Contribution with their income tax. They will have to pay a Social Insurance Contribution of 3% of all income, or �253, whichever is greater, as well as the Health Contribution, where applicable.
  • Those paying PAYE tax will have their contributions deducted from their income by their employers.
  • Those who have been told by an Inspector of Taxes that they need not make a return of income must pay a flat rate contribution of �157 to the Department of Social and Family Affairs.
  • Those whose main income comes from share fishing and who have been classified as self-employed may opt to pay an extra contribution for certain benefits under Class P. In addition to the Class S contribution, they will pay a contribution of 4% of income over the PRSI-Free Allowance of �2,500 per annum up to a ceiling of �50,700, or pay �200, whichever is the greater.
Voluntary contributions

If you are no longer covered by compulsory PRSI, either as an employee or as a self-employed person, and you are under age 66, you may opt to become insured on a voluntary basis, so long as you satisfy certain conditions. The amount of a Voluntary Contribution in any contribution year is calculated as a percentage of your reckonable income, subject to a minimum and a maximum payment. There are three rates of voluntary contributions:

 

Rates and Benefits for Voluntary Contributors

High Rate:

Low Rate:

Special Rate:

Benefits Covered

Yes

 

 

State Pension (Transition)

Yes

 

Yes

State Pension (Contributory)

Yes

Yes

Yes

Widow's and Widower's (Contributory) Pension

Yes

Yes

Yes

Guardian's Payment (Contributory)

Yes

Yes

Yes

Bereavement Grant

 

Rates of Voluntary Contributions

High Rate

6.6%

for people who paid PRSI at Classes A, E and H

Low Rate

2.6%

for people who paid PRSI at Classes B, C and D

Special Rate

 

Flat rate of �253 for people who paid PRSI at Class S.

See information booklet SW8 for details.


PRSI Contribution Rates

EE = Employee, ER = Employer

Class A

Annual Pay Ceiling

Weekly Pay Band

PRSI Subclass

How much of weekly pay

First �50,700

Over �50,700

 

EE

ER

EE

ER

%

%

%

%

�38 - �352

A0

All

Nil

8.50

Nil

8.50

�352.01 to �356

AX

First �127
Balance

Nil
4.00

8.50
8.50

Nil
Nil

8.50
8.50

�356.01 to �500

AL

First �127
Balance

Nil
4.00

10.75
10.75

Nil
Nil

10.75
10.75

More than �500

A1

First �127

2.00

10.75

2.00

10.75

�127.01 to �1,925

6.00

10.75

2.00

10.75

Balance

6.50

10.75

2.50

10.75

More than �500

*A2

First �127
Balance

Nil
4.00

10.75
10.75

Nil
Nil

10.75
10.75

 

Community Employment participants only

Weekly Limits

Subclass

How much of weekly pay

All income

EE

ER

%

%

Up to �352

A8

All

Nil

0.50

More than �352

A9

First �127
Balance

Nil
4.00

0.50
0.50

* Subclass A2 applies to medical card holders and to people getting a Social Welfare Widow's or Widower's Pension, a One-Parent Family Payment or a Deserted Wife's Benefit or Allowance.

People within Class A

Class A Benefits

  • People in industrial, commercial and service-type employment who are employed under a contract of service with reckonable pay of �38 or more per week from all employments.
  • Civil and Public Servants recruited from 6 April, 1995.
  • Jobseekers Benefit
  • Illness Benefit
  • Maternity Benefit
  • Adoptive Benefit
  • Health and Safety Benefit
  • Invalidity Pension
  • Widow's or Widower's (Contributory) Pension
  • Guardian's Payment (Contributory)
  • State Pension (Contributory)
  • State Pension (Transition)
  • Bereavement Grant
  • Treatment Benefit
  • Occupational Injuries Benefit
  • Carer's Benefit

EE: employee;  ER: employer

Class J

Annual pay ceiling

Weekly pay band

PRSI

How much of weekly pay

First �50,700

Over �50,700

 

EE 

ER

EE

ER

%

%

%

%

Up to �500

J0

All

Nil

0.50

Nil

0.50

More than �500

J1

First �1,925
Balance

2.00
2.50

0.50
0.50

2.00
2.50

0.50
0.50

More than �500

*J2

All

Nil

0.50

Nil

0.50

* Subclass J2 applies to medical card holders and to people getting a Social Welfare Widow's or Widower's Pension, a One-Parent Family Payment or a Deserted Wife's Benefit or Allowance.

People within Class J

Class J Benefits

Normally people with reckonable pay of less than �38 per week (from all employments). However, a small number of employees are insurable at Class J, no matter how much they earn, such as employees over age 66 or people in subsidiary employment. See SW 14 on our website for details (www.welfare.ie).

  • Occupational Injuries Benefit

 

Class E

Annual pay ceiling

Weekly pay band

PRSI

How much of weekly pay

First �50,700

Over �50,700

 

EE 

ER

EE

ER

%

%

%

%

Up to �352

E0

All

Nil

6.87

Nil

6.87

More than �352

E1

First �127
Balance

Nil
3.33

6.87
6.87

Nil
Nil

6.87
6.87

People within Class E

Class E Benefits

Ministers of Religion employed by the Church of Ireland Representative Body. PRSI is paid under the Special Collection System and the rates quoted do not include the Health Contribution. This contribution should be paid directly to Revenue when paying income tax.

  • Illness Benefit
  • Maternity Benefit
  • Adoptive Benefit
  • Health and Safety Benefit
  • Invalidity Pension
  • Widow's or Widower's (Contributory) Pension
  • Guardian's Payment (Contributory)
  • State Pension (Contributory)
  • State Pension (Transition)
  • Bereavement Grant
  • Treatment Pension
  • Carer's Benefit

 

Class B

Annual pay ceiling

Weekly pay band

PRSI

How much of weekly pay

First �50,700

Over �50,700

 

EE 

ER

EE

ER

%

%

%

%

Up to �352

B0

All

Nil

2.01

Nil

2.01

�352.01 to �500

BX

First �26
Balance

Nil
0.90

2.01
2.01

Nil
Nil

2.01
2.01

More than �500

B1

First �26

2.00

2.01

2.00

2.01

�26.01 to �1,925

2.90

2.01

2.00

2.01

Balance

3.40

2.01

2.50

2.01

More than �500

*B2

First �26
Balance

Nil
0.90

2.01
2.01

Nil
Nil

2.01
2.01

* Subclass B2 applies to medical card holders and to people getting a Social Welfare Widow's or Widower's Pension, a One-Parent Family Payment or a Deserted Wife's Benefit or Allowance.

People within Class B

Class B Benefits

  • Permanent and pensionable civil servants recruited prior to 6 April 1995.
  • Registered doctors and dentists employed in the civil service.
  • Garda�, recruited prior to 6 April, 1995
  • Widow's or Widower's (Contributory) Pension
  • Guardian's Patment (Contributory)
  • Limited Occupational Injuries Benefits
  • Bereavement Grant
  • Carer's Benefit

 

Class C

Annual pay ceiling

Weekly pay band

PRSI

How much of weekly pay

First �50,700

Over �50,700

 

EE 

ER

EE

ER

%

%

%

%

Up to �352

C0

All

Nil

1.85

Nil

1.85

�352.01 to �500

CX

First �26
Balance

Nil
0.90

1.85
1.85

Nil
Nil

1.85
1.85

More than �500

C1

First �26

2.00

1.85

2.00

1.85

�26.01 to �1,925

2.90

1.85

2.00

1.85

Balance

3.40

1.85

2.50

1.85

More than �500

*C2

First �26
Balance

Nil
0.90

1.85
1.85

Nil
Nil

1.85
1.85

* Subclass C2 applies to medical card holders and to people getting a Social Welfare Widow's or Widower's Pension, a One-Parent Family Payment or a Deserted Wife's Benefits or Allowance.

People within Class C

Class C Benefits

Commissioned Army Officers and Members of the Army Nursing Service, recruited prior to 6 April 1995.

  • Widow's or Widower's (Contributory) Pension
  • Guardian's Payment (Contributory)
  • Bereavement Grant
  • Carer's Benefit

 

Class D

Annual pay ceiling

Weekly pay band

PRSI

How much of weekly pay

First �50,700

Over �50,700

 

EE 

ER

EE

ER

%

%

%

%

Up to �352

D0

All

Nil

2.35

Nil

2.35

�352.01 to �500

DX

First �26
Balance

Nil
0.90

2.35
2.35

Nil
Nil

2.35
2.35

More than �500

D1

First �26

2.00

2.35

2.00

2.35

�26.01 to �1,925

2.90

2.35

2.00

2.35

Balance

3.40

2.35

2.50

2.35

More than �500

*D2

First �26
Balance

Nil
0.90

2.35
2.35

Nil
Nil

2.35
2.35

* Subclass D2 applies to medical card holders and to people getting a Social Welfare Widow's or Widower's Pension, a One-Parent Family Payment or a Deserted Wife's Benefit or Allowance.

People within Class D

Class D Benefits

Permanent and pensionable employees in the public service other than those mentioned in Class B and C, recruited prior to 6 April, 1995.

  • Widow's or Widower's (Contributory) Pension
  • Guardians Payment (Contributory)
  • Occupational Injuries Benefits
  • Bereavement Grant
  • Carer's Benefit

 

Class H

Annual pay ceiling

Weekly pay band

PRSI

How much of weekly pay

First �50,700

Over �50,700

 

EE 

ER

EE

ER

%

%

%

%

Up to �352

H0

All

Nil

10.05

Nil

10.05

�352.01 to �500

HX

First �127
Balance

Nil
3.90

10.05
10.05

Nil
Nil

10.05
10.05

More than �500

H1

First �127

2.00

10.05

2.00

10.05

�127.01 to �1,925

5.90

10.05

2.00

10.05

Balance

6.40

10.05

2.50

10.05

More than �500

*H2

First �127
Balance

Nil
3.90

10.05
10.05

Nil
Nil

10.05
10.05

* Subclass H2 applies to medical card holders and to people getting a Social Welfare Widow's or Widower's Pension, a One-Parent Family Payment or a Deserted Wife's Benefit or Allowance.

People within Class H

Class H Benefits

NCO's and enlisted personnel of the Defence Forces.

  • Jobseekers Benefit
  • Illness Benefit
  • Maternity Benefit
  • Adoptive Benefit
  • Health and Safety Benefit
  • Invalidity Pension
  • Widow's or Widower's (Contributory) Pension
  • Guardians (Contributory) Allowance
  • State Pension (Contributory)
  • State Pension (Transition)
  • Bereavement Grant
  • Treatment Benefit
  • Carer's Benefit

Only certain benefits are payable during service.

 

Class K

No Upper Ceiling

Weekly pay band

PRSI

How much of weekly pay

All Income

 

EE 

ER

%

%

Up to �500

No contribution payable. Record under Class M.

Nil

Nil

More than �500

K1

First �1,925
Balance

2.00
2.50

Nil
Nil

People within Class K

No benefits under Class K

People receiving income on which they only pay the Health Contribution such as:

  • those in receipt of an occupational pension,
  • certain office holders (for example Judges and State Solicitors)
  • people over 66, previously on Class S.
  • Nil

 

Class M

No contribution payable

People within Class M

Class M Benefits

People with no contribution liability such as, employees under age 16 or people within Class K with a Nil liability

  • Occupational Injuries Benefits, in certain cases

S /E = Self-Employed Contributor

Class S

No upper ceiling

Weekly Income Thresholds

PRSI

How much of weekly Income

All Income

 

 

%

Up to �500

S0

ALL

3.00

More than �500

S1

First �1,925
Balance

5.00
5.50

More than �500

*S2

ALL

3.00

 

* Subclass S2 applies to medical card holders and to people getting a Social Welfare Widow's or Widower's Pension, a One-Parent Family Payment or a Deserted Wife's Benefit or Allowance.

People within Class S

Class S Benefits

Self-employed people, including certain company directors and certain people with income from investments and rents. See SW14 for more details on Class S.

The minimum annual contribution for Class S is �253 for the year 2008.

  • Widow's or Widower's (Contributory) Pension
  • Guardians Payment (Contributory) Allowance
  • State Pension (Contributory)
  • Maternity Benefit
  • Adoptive Benefit
  • Bereavement Grant

 

Class P (Optional)

First �50,700
%

Over �50,700
%

First �2,500 per year
Balance

Nil
4.00

Nil
Nil

People within Class P

Class P Benefits

Sharefishermen/women who are classified as self-employed and who are already paying PRSI under Class S.

This contribution is over and above the PRSI being paid under Class S.

The minimum annual contribution for Class P is �200 for the year 2008.

  • Limited Jobseekers Benefit
  • Limited Illness Benefit
  • Treatment Benefit

Go to SW19 full list of contents


Last modified:10/11/2008
 

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