Advance Notice of PRSI Changes For Computer Users 2020


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Employee PRSI

  1. There are no changes in employee rates of PRSI.
  2. There is no change to the employee PRSI Credit.

Self-employed Payments

 

  1. There are no changes to the rate of self-employed PRSI or in the minimum/flat rate self-employed PRSI payments.

Employer PRSI

 

  1. The National Training Fund Levy (NTFL), collected alongside Employer PRSI for Classes A and H, will increase by 0.1% from 0.9% to 1.0% from 1 January 2020. This means that Employer rates (combined PRSI and NTFL) for Classes A and H will increase by 0.1%.
  2. The Government has accepted the recommendation of the Low Pay Commission to increase the national minimum wage by 30c to €10.10 if there is an orderly Brexit. The date of introduction of the increased rate is not yet confirmed. This may require a change in the employer higher rate PRSI threshold. A notice will issue in advance of any change.



 

Other PRSI Classes

 

  1. There are no changes to other PRSI Classes.

Income bands and subclasses

 

s

AO

A8, BO, CO, DO and HO

Weekly

€38 to €352

up to and including €352

Fortnightly

€76 to €704 *

up to and including €704

Monthly

€165 to €1,525 *

up to and including €1,525

* This threshold only applies to Class A employees, whose total earnings/income, including if appropriate share-based remuneration, in each week of the fortnight or month are at least €38.

Subclass

AX (PRSI credit applies)

Weekly

€352.01 to €386

Fortnightly

€704.01 to €772

Monthly

€1,525.01 to €1,673

 

Subclass

AL (PRSI credit applies)

Weekly

€386.01 to €424

Fortnightly

€772.01 to €848

Monthly

€1,673.01 to €1,837

 

Subclass

HX (PRSI credit applies)

Weekly

€352.01 to €424

Fortnightly

€704.01 to €848

Monthly

€1,525.01 to €1,837

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Subclass

A9 (PRSI credit applies on earnings up to €424)

Weekly

more than €352.01

Fortnightly

more than €704

Monthly

more than €1,525

 

 

Subclass

A1

Weekly

more than €424

Fortnightly

more than €848

Monthly

more than €1,837

 

Subclasses

BX, CX and DX

JO, M and SO

Weekly

€352.01 to €500

up to and including €500

Fortnightly

€704.01 to €1,000

up to and including €1,000

Monthly

€1,525.01 to €2,167

up to and including €2,167

 

Subclass

K1

Weekly

more than €100

Fortnightly

more than €200

Monthly

more than €433

 

PRSI contribution rates from 1 January 2020

 

Non-cumulative weekly income band

 

PRSI
Subclass

 

How much of weekly income

 

Employee %

 

Employer %

 

Employee & Employer %

 

Private and some public sector employments

Up to €37.99

JO

All

0

0.50

0.50

€38 - €352

AO

All

0

8.80

8.80

€352.01 - €386

AX

All

4.00

8.80

12.80

€386.01 - €424

AL

All

4.00

11.05

15.05

More than €424

A1

All

4.00

11.05

15.05

PRSI credit applies to sub-classes AX and AL.

 

Use the following subclasses for Community Employment participants.


Up to €352

A8

All

0

0.50

0.50

More than €352

A9

All

4.00

0.50

4.50

PRSI credit applies on earnings up to €424.

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.

Up to €500

JO

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

 

Office Holders

Up to €100

M

All

0

0

0

More than €100

K1

All

4.00

0

4.00

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

All income

M

All

0

0

0


Share-based remuneration may, in certain circumstances, be subject to employee PRSI. Employers PRSI is not chargeable on share based remuneration.

 

PRSI contribution rates from 1 January 2020

 

Non-cumulative weekly income band

 

PRSI
Subclass

 

How much of weekly income

 

Employee %

 

Employer %

 

Employee & Employer %

 

Public sector employments

Up to €352

BO

All

0

2.01

2.01

€352.01 - €500

BX

All

0.90

2.01

2.91

 

More than €500

 

B1

Up to €1,443 inclusive

0.90

2.01

2.91

Balance

4.00

2.01

6.01

Up to €352

CO

All

0

1.85

1.85

€352.01 - €500

CX

All

0.90

1.85

2.75

 

More than €500

 

C1

Up to €1,443 inclusive

0.90

1.85

2.75

Balance

4.00

1.85

5.85

Up to €352

DO

All

0

2.35

2.35

€352.01 - €500

DX

All

0.90

2.35

3.25

 

More than €500

 

D1

Up to €1,443 inclusive

0.90

2.35

3.25

Balance

4.00

2.35

6.35

 

Up to €352

HO

All

0

10.35

10.35

€352.01 - €424

HX

All

3.90

10.35

14.25

More than €424

H1

All

3.90

10.35

14.25

PRSI Credit applies to sub-class HX.

Self-employed (on PAYE system only)

Up to €500

SO

All

4.00

0

4.00

Share-based remuneration may, in certain circumstances, be subject to employee PRSI. Employers PRSI is not chargeable on share based remuneration.

Important points to note

• Under Classes A and H, employers pay a combined PRSI charge and contribution to the National Training Fund Levy (NTFL). The current NTFL contribution for both Class A and Class H employers is 0.9%. The balance of the employer charge is PRSI. With effect from 1 January 2020, the NTFL contribution for both Classes A and H will increase by 0.1% from 0.9% to 1.0%. There is no increase in the Employer PRSI charge. This will, however, result in a 0.1% increase in the rates payable by employers with employees subject to PRSI Classes A and H, as follows:

Important points to note

 

 

Class A Employer Rate

Weekly Income Band

Old Employer Rate

New Employer Rate

€38 to €386

8.7%

8.8%

In excess of €386

10.95%

11.05%

Class H Employer Rate


Weekly Income Band

Old Employer Rate

New Employer Rate

All Income

10.25%

10.35%

 

  1. For Class A and Class H employees with gross earnings between €352.01 and €424, the amount of the PRSI charge at 4% is reduced by the tapered weekly PRSI Credit.
  2. There is no annual earnings ceiling for PRSI for employees.
  3. There is no PRSI relief on pension contributions made by private sector employees.
  4. PRSI relief on pension contributions paid by private sector employers remains unchanged.
  5. Civil and public servants pay PRSI on the Additional Superannuation Contribution.
  6. Civil and public service employers do not have to pay any employer PRSI on the Additional Superannuation Contribution.
  7. 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.
  8. Class A employees earning between €38 and €352 inclusive a week should be recorded under Subclass AO.
  9. Class A employees earning between €352.01 and €386 a week should be recorded under Subclass AX and the tapered PRSI credit applied.
  10. Class A employees earning between €386.01 and €424 a week should be recorded under Subclass AL and the tapered PRSI credit applied.
  11. For income of more than €424 a week, subclass A1 should be returned.
  12. For income of more than €500 a week, subclasses B1, C1, D1, H1, J1 and S1, as appropriate, should be returned.
  13. 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 PRSI Credit applies to Class A9 for earnings up to €424.
  14. 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.
  15. For participants in the JobsPlus scheme the appropriate rates of PRSI apply to both the employer and the employee.
  16. Subclasses A4, A6 and A7 which were previously used for the Employer’s PRSI Exemption Scheme are no longer in use as the scheme was closed to new entrants since 1 July 2013.

 

You can download PRSI information booklets from our website at www.welfare.ie
 
.

Calculation of the Class A PRSI Credit

  • Class A employee PRSI is calculated at 4% of gross weekly earnings.
  • For gross earnings between €352.01 and €424 in a week, the 4% PRSI charge is reduced by the PRSI Credit
  • The amount of the PRSI Credit depends on your gross weekly earnings.
  • At gross weekly earnings of €352.01, the maximum PRSI Credit of €12.00 per week applies.
  • For earnings between €352.01 and €424 (sub-classes AX and AL), the maximum weekly PRSI Credit of €12.00, is reduced by one-sixth of earnings in excess of €352.01
  • The following example shows how to calculate the PRSI Credit and the new PRSI charge, for gross weekly earnings of €377.

 

PRSI Credit:

Maximum PRSI Credit                                       €12.00
One-sixth of earnings in excess of €352.01
(377.00 – 352.01 = 24.99 / 6)                             (€ 4.17)
Reduced PRSI Credit                                          € 7.83

PRSI @ 4%                                                        €15.08

Less: Reduced PRSI Credit                                 € 7.83

2020 weekly PRSI Charge € 7.25

 

Note: The calculation of the PRSI charge, and accordingly the PRSI Credit is based on weekly earnings.

This advance notice of PRSI changes for computer users is available on our website at www.welfare.ie or through our PRSI mailing list. If you wish to add your name to our list, please register at www.welfare.ie.

Last modified:11/10/2019
 

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