The UK will leave the European Union on 31st January 2020, with the Withdrawal Agreement having been agreed and ratified by both the UK and the European Union. A transition period will follow lasting until at least 31st December 2020. During this time all the existing EU social security regulations will continue to apply to the UK. This means there is no change to the existing reciprocal social security arrangements between Ireland and the UK.
For Brexit-related information see:
For information on social welfare entitlements see:
PAYE Modernisation (P35, P45, P60)
Pay related social insurance (PRSI) contributions go to the Social Insurance Fund (SIF) which helps pay for Social Welfare benefits and pensions.
With very few exceptions:
who are aged 16 or over and under pensionable age, are liable for Pay-Related Social Insurance (PRSI) contributions.
The employers of the above employees, are liable for Pay-Related Social Insurance (PRSI) contributions on the reckonable earnings of the employee (including notional pay).
See separate guideline on "Scope (Insurability of Employment)" for more detail.
Modified rate contributors who have self-employed income from a trade or profession, are liable for PRSI contributions on this income and any unearned income they have.
From 1 January 2014, employed contributors and occupational pensioners aged under 66 years whose only additional income is unearned may be liable for PRSI contributions on this income.
PRSI contributions will be payable on the following basis:
Employees covered under Classes A, B, C, D and H with reckonable earnings of not more than €352 do not pay PRSI for that week. However, the employer's share of PRSI remains payable as normal. Employees continue to be covered for the benefits and pensions appropriate to their PRSI Class. Once earnings exceed €352 both employee and employer PRSI is charged.
Reckonable earnings for PRSI purposes are gross pay including notional pay (or benefit in kind) if applicable, plus superannuation and permanent health insurance contributions made by an employee. These payments may be allowable for income tax purposes.
In general, PRSI contribution classes are decided by the nature of a person's employment. PRSI contribution classes are further divided into subclasses – the sub class is determined by the amount of employee's weekly gross reckonable earnings: 0 and 1 common to most classes, and X applicable to Class A, B, C, D and H only.
Certain sub-classes also cater for specific schemes:
The type of employment in each PRSI contribution class and the social insurance benefits are outlined in SW 14.
If there is any doubt as to whether PRSI should be paid or which Class of PRSI should apply, the department's Scope Section may be asked to decide the issue. (See separate guideline on Scope)
Where a decision results in the PRSI Class changing to a higher rate of PRSI, arrears will be collected by a Social Welfare Inspector from the Employer.
Where a decision results in the PRSI Class changing to a lower rate of PRSI, a refund can be claimed from PRSI Refunds Section, after the tax year ends. However, if the decision refers to the current tax year the employer should make the necessary adjustment to correct the error before the end of the tax year.
If a person has overpaid PRSI contributions an application for a refund should be made after the tax year ends. With effect from 1 January 2010, an application for the return of PRSI contributions must be made within four years of the last day of the contribution year in respect of which the contributions concerned were paid.
Application for a refund should be sent to:
Most employees pay PRSI through Revenue's PAYE system. However, employees who do not pay tax through the PAYE system pay PRSI on their earnings through the special collection system operated by the Department of Employment Affairs and Social Protection.
Note: Employees who hold PAYE Exclusion orders pay PRSI through the PAYE system with effect from 1 January 2011.
The special collection system includes employees:
PRSI contributions for these employees are paid direct to The Accountant, Department of Employment Affairs and Social Protection, Government Buildings, St Alphonsus Road, Dundalk, Co Louth.
In general, the vast majority of self-employed people pay their PRSI contributions to the Revenue Commissioners when paying their income tax. However, there are certain categories of people who do not, such as:
A self-employed Company Director where PRSI is deducted under the PAYE system
Those with income of €5,000 or over and who have been advised by the Inspector of Taxes that they need not make a return of income, are liable to pay a flat rate PRSI contribution to:
For further details of the PRSI contribution collection system contact:
(Classes A, J and E)
PRSI Class A
People within CLASS A:
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 and Community Employment participants from 6 April 1996.
Class A Benefits:
PRSI Class J
People within CLASS J:
Class J Benefits:
PRSI Class E
People within CLASS E:
Ministers of religion employed by the Church of Ireland Representative Body
Class E Benefits:
(Classes B, C, D and H)
PRSI Class B
People within CLASS B:
Permanent and pensionable Civil Servants, Registered Doctors and Dentists employed in the Civil Service and Gardaí, recruited prior to 6 April 1995.
Class B Benefits:
PRSI Class C
People within CLASS C:
Commissioned Army Officers and Members of the Army Nursing Service, recruited prior to 6 April 1995.
Class C Benefits:
PRSI Class D
People within CLASS D:
Permanent and pensionable employees in the public service other than those mentioned in Classes B and C, recruited prior to 6 April 1995.
Class D Benefits:
PRSI Class H
People within CLASS H:
Non Commissioned Officer's and enlisted personnel of the Defence Forces.
Class H Benefits:
Only certain benefits are payable during service.
(Classes K, M, S and P)
PRSI Class K
People within CLASS K:
Class K applies to certain public representatives (the President, the holder of a "qualifying office", member of the Oireachtas and the judiciary, certain military judges, the Attorney General, the Comptroller and Auditor General, member of a local authority and certain members of the European Parliament), who earn over €5,200 a year. These Public Office holders pay PRSI at a rate of 4% on all income.
Any of these specified public representatives who earn €5,200 a year or less (€100 a week or less) have a nil liability – see Class M.
Class K also applies to the additional earned self-employed income from a trade or profession of a modified rate contributor and on any unearned income they have.
From 1 January 2014, Class K may also apply to the unearned income of employed contributors and occupational pensioners aged under 66 years where this is the only additional income.
Class K Benefits:
PRSI Class M
People within CLASS M:
PRSI Class M is used for people with no contribution liability such as:
Class M Benefits:
Occupational Injuries Benefits, in certain cases
PRSI Class S
People within CLASS S:
Self-employed people such as farmers, certain company directors, people in business on their own account and certain people with income from investments, rents and maintenance.
Class S Benefits:
PRSI Class P
People within CLASS P:
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 paid under Class S. The minimum annual contribution for Class P is €200.
Class P Benefits: