Working for Work : Chapter 5 : Income Tax & Social Insurance

Pay Related Social Insurance (PRSI)

When you are in employment you make Pay Related Social Insurance (PRSI) contributions each week, often referred to as "Stamps", which are deducted directly from your wages. These contributions provide for the payment of 'benefit' social welfare payments in the event that you become unemployed (Jobseekers Benefit) or if you are ill (Illness Benefit, etc.) and unable to work. These PRSI contributions can also count towards your contributory old age pension in the future. The PRSI and social insurance system is managed by the Department of Social Protection.

Employees:

Most employees pay a Class A PRSI contribution and are covered for all Social Welfare benefits and pensions. This applies to people in industrial, commercial and service type employment that are employed under a contract of service. It also applies to civil and public servants recruited from 6 April 1995.

Self-Employed:

Self-employed people normally pay Class S PRSI. This year the contribution increased from 3% to 4%. Self-employed people do not qualify for Jobseekers Benefit or Illness Benefit. They are covered for certain pensions, Maternity and Adoptive Benefit, Guardian's Payment (Contributory) and the Bereavement Grant.

How much PRSI will I pay?

PRSI is calculated on your gross earnings, and is deducted on a weekly basis. --

 

Earning under €352 gross per week: You will not pay any PRSI. -- Earnings over €352.01: No PRSI on the first €127, 4% on income above this amount. With the introduction of the Universal Social Charge, the employee's annual earnings ceiling has been abolished and PRSI is payable on all income.

 

If you earn over €500 per week and hold a medical card, or receive a Widow's/Widow's pension, One-Parent Family payment or Deserted Wife's Benefit/Allowance, you may pay a lower rate of PRSI called Subclass A2.

Once you are earning more than €38.00 per week you will still get a Class A PRSI Contribution or "stamp" as your employer will be paying social insurance for you.

Example

PRSI on earnings of €400 gross per week Gross weekly earnings €400.00 Less weekly PRSI allowance - €127.00 Assessable earnings €273.00 Your PRSI contribution (4% of E273) = €10.92

Last Updated: 01/09/2011 ^ back to top