Employers Guide to PRSI Contributions - SW3

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Certain lump sum payments made to employees when they leave their employment may not be regarded as reckonable earnings for PRSI purposes. Examples of such payments are redundancy payments, gratuities or ex-gratia lump sum payments and, in some instances, payments in lieu of notice to an employee when they retire or leave their employment (please refer to http://www.revenue.ie/ in relation to the treatment for tax purposes of the specific  lump sum payment.)

Where PRSI is not chargeable on the particular lump sum payment, PRSI Class M should be recorded."

Last modified:20/11/2012

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