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Operational Guidelines: PRSI - Pay-Related Social Insurance - Contributions and Classes
From Department of Social Protection
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Ireland / United Kingdom Social Security arrangements from 1st January 2021
The European Union and the United Kingdom agreed a Trade & Cooperation Agreement which contains a Protocol on Social Security to take effect from 1st January 2021. The Protocol provides for a wide range of social security issues into the future. On the 31st December 2020, the Convention on Social Security agreed between Ireland and the United Kingdom was commenced. Together these Agreements ensure, that all existing social security arrangements for Irish & UK citizens are maintained into the future. Ireland as an EU Member State, will extend on a unilateral basis the advantages of the Convention to Union citizens, as required.
For Brexit-related information see:
For information on social welfare entitlements see:
PAYE Modernisation (P35, P45, P60)
P35 – 2018 was the final year for which a P35 was issued by employers. From 1 January 2019 the P35 was abolished in line with PAYE Modernisation. Details previously included on the annual P35 Return must now be reported by employers at the time they pay their employees. This is done either through the payroll package or through the Revenue Online System (ROS).
P45 - From 1 January 2019, employees no longer receive a P45 when leaving a job. Instead, as part of PAYE Modernisation, employers enter the employee’s leaving date, details of their final pay and deductions into Revenue’s Online System. This information can be accessed by the employee through Revenue’s myAccount ‘Manage Your Tax’ service. The Department of Social Protection no longer require a P45 for claims.
P60 – From 1 January 2019, employees no longer get a P60 at the end of the year. As part of PAYE Modernisation, the P60 has been replaced with an ‘Employment Detail Summary’ which is available to employees online through Revenue’s myAccount service.
Pay Related Social Insurance (PRSI) contributions are paid into the Social Insurance Fund (SIF) which helps pay for Social Welfare benefits and pensions.
With very few exceptions:
- all employees whether full-time or part-time earning €38 or more per week, and
- self-employed workers with an income of €5,000 a year or more
who are aged 16 or over and under pensionable age (currently 66), are liable to pay 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.
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:
- at the appropriate rate for an employee on all reckonable earnings (including notional pay)
- the employer's share at the appropriate rate on the reckonable earnings of the employee (including notional pay). The employer's contribution for classes A and H includes a 1% National Training Fund Levy.
- for the self-employed at Class S (social insurance at 4% on all reckonable income)
Employees covered under Classes A , B , C , D , E and H with reckonable earnings of not more than €352 in a week 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.
To request a copy of your Irish social insurance record, please visit PRSI Contribution Statement
In general, PRSI contribution classes are decided by the nature of a person's employment. PRSI contribution classes are further divided into subclasses – the subclass is determined by the amount of employee's weekly gross reckonable earnings:
Certain subclasses also cater for specific schemes:
- subclasses A8 and A9 apply to Community Employment participants and people on the Job Initiative
The type of employment in each PRSI contribution class and the social insurance benefits are outlined in SW14 PRSI Contribution Rates and User Guide
If there is any doubt as to whether PRSI should be paid or which class of PRSI should apply, the Department of Social Protection’s Scope Section may be asked to decide the issue. (See separate guidelines 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. Applications 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.
For more information , please see PRSI Refunds
Application for a refund should be sent to:
PRSI Refunds
Address:
Department of Social Protection, Gandon House, Amiens Street, Dublin 1, D01 A361.
Email:
Phone number:
The majority of employees pay PRSI through Revenue's PAYE system, including those who are not liable to income tax. However, a limited number of employees pay PRSI on their earnings through the special collection system operated by the Department of Social Protection.
Note: Employees who hold PAYE Exclusion orders pay PRSI through the PAYE system.
The special collection system includes employees:
- who continue to be insured under Irish social security law while working abroad under provisions of EU Regulations, Bilateral Agreements or Statutory Instrument 312 of 1996 and whose employers have no access to an Irish payroll function
- who pay PRSI as employees but are self-assessed for income tax purposes - for example, sub-postmasters, social welfare branch managers and medical consultants employed on a fee basis by the Health Service Executive (HSE)
- who are employees of Embassies and certain conditions apply
- who are in receipt of Share based remuneration where the employee realises a gain in respect of tax exempt share options granted and at the time the options are exercised, the employee is no longer an employee of the employer who granted the options (see PRSI SBR 1 )
- who are Domestic Employees employed in the home of their employer on domestic duties only, and who earn less than €40 per week in the domestic employment (see leaflet IT 53 on www.revenue.ie )
- whose earnings are paid from an employer's office or residence outside the State and the employer is not obliged to register for PAYE with Revenue (see Tax and Duty Manual Part 42-04-65 on www.revenue.ie )
- who are Church of Ireland Ministers employed by the Representative Church Body of Ireland
- who are SOLAS Trainees
PRSI contributions for these employees are paid direct to;
The Accountant, Department of Social Protection, Government Buildings, St Alphonsus Road, Dundalk, Co Louth.
Enquiries to:
PRSI Special Collection Section
Address:
Social Welfare Services Office, Cork Road , Waterford, Co. Waterford, X91 EH04.
Email:
Phone number:
In general, the majority of self-employed people pay their PRSI contributions to the Revenue Commissioners when paying their annual income taxes. 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:
Client Eligibility Services - Waterford
Address:
Department of Social Protection, Social Welfare Services Office, Cork Road
, Waterford
Phone number:
For further details of the PRSI contribution collection system contact us on the above phone number.
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. Only Community Employment and Job Initiative participants are covered by PRSI subclasses A8 and A9.
Class A Benefits:
- Adoptive Benefit
- Carer’s Benefit
- Guardian’s Payment (Contributory)
- Health and Safety Benefit
- Illness Benefit
- Invalidity Pension
- Jobseeker's Benefit
- Maternity Benefit
- Occupational Injuries Benefit
- Parent’s Benefit
- Partial Capacity Benefit
- Paternity Benefit
- State Pension (Contributory)
- Treatment Benefit
- Widow/Widower's or Surviving Civil Partner's (Contributory) Pension
PRSI Class J
People within CLASS J:
- people in industrial, commercial and service-type employment who are employed under a contract of service and whose gross earnings are less than €38 per week from all employments
- people insured for Occupational Injuries Benefits only, for example employees aged 66 years or over
- people whose employment is of a subsidiary nature or of inconsiderable extent.
Class J Benefits:
- Occupational Injuries Benefits
PRSI Class E
People within CLASS E:
Ministers of Religion employed by the Church of Ireland Representative Body. PRSI is paid under the Special Collections System of the Department of Social Protection.
Class E Benefits:
- Adoptive Benefit
- Carer’s Benefit
- Guardian’s Payment (Contributory)
- Health and Safety Benefit
- Illness Benefit
- Invalidity Pension
- Maternity Benefit
- Parent’s Benefit
- Partial Capacity Benefit
- Paternity Benefit
- State Pension (Contributory)
- Treatment Benefit
- Widow/Widower's or Surviving Civil Partner's (Contributory) Pension
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:
- Carer’s Benefit
- Guardian’s Payment (Contributory)
- Limited Occupational Injuries Benefit
- Parent’s Benefit
- Widow/Widower's or Surviving Civil Partner's (Contributory) Pension
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:
- Carer’s Benefit
- Guardian’s Payment (Contributory)
- Parent’s Benefit
- Widow/Widower's or Surviving Civil Partner's (Contributory) Pension
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:
- Carer’s Benefit
- Guardian’s Payment (Contributory)
- Occupational Injuries Benefit
- Parent’s Benefit
- Widow/Widower's or Surviving Civil Partner's (Contributory) Pension
PRSI Class H
People within CLASS H:
Non Commissioned Officers and enlisted personnel of the Defence Forces.
Class H Benefits:
- Adoptive Benefit
- **Carer’s Benefit
- Guardian’s Payment (Contributory)
- Health and Safety Benefit
- Illness Benefit
- Invalidity Pension
- Jobseeker's Benefit
- Maternity Benefit
- Parent’s Benefit
- Partial Capacity Benefit
- Paternity Benefit
- State Pension (Contributory)
- **Treatment Benefit
- ** Widow/Widower's or Surviving Civil Partner's (Contributory) Pension
**Only paid during service.
PRSI Class K
People within CLASS K:
Class K applies to certain public office holders with an income in excess of €100 a week. The public office holders affected include the President, members of the Oireachtas, the judiciary, certain military judges, the Attorney General, the Comptroller and Auditor General and certain members of the European Parliament. These public office holders pay a contribution at the rate of 4%. Any of these specified public office holders who earn €5,200 a year or less (€100 a week or less) have a nil PRSI liability – see Class M.
Class K also applies to modified rate contributors, for example civil and public servants recruited prior to 6 April 1995, with self-employed earned income from a profession or trade, and any other unearned income (such as rental income, investment income, dividends and interest on deposits and savings). 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:
Nil
PRSI Class M
People within CLASS M:
PRSI Class M applies to people with no contribution liability such as:
- employees under age 16,
- people of pensionable age (currently 66) or over (including those previously liable for Class S),
- persons in receipt of occupational pensions or lump-sum termination payments (on that portion of income only),
- people within Class K with a nil liability (public office holders with a weekly income of less than €100 a week).
Class M Benefits:
Occupational Injuries Benefits, in certain cases
PRSI Class S
People within CLASS S:
Self-employed people, including certain company directors and certain people with income from investments and rents and, since January 2017, members of a local authority. The minimum annual contribution for Class S is €500.
Class S Benefits:
- Adoptive Benefit
- Guardian’s Payment (Contributory)
- Invalidity Pension
- Jobseeker's Benefit (Self-Employed)
- Maternity Benefit
- Parent’s Benefit
- Partial Capacity Benefit
- Paternity Benefit
- State Pension (Contributory)
- Treatment Benefit
- Widow/Widower's or Surviving Civil Partner's (Contributory) Pension
PRSI Class P
People within CLASS P:
Class P is an optional contribution Class. It applies to share fishermen and fisherwomen 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 or 4% of all income in excess of €2500 whichever is the greater amount.
Class P Benefits:
- Limited Jobseeker's Benefit (See relevant guideline )
- Limited Illness Benefit (See relevant guideline )
- Treatment Benefit
