Operational Guidelines: PRSI - Pay-Related Social Insurance - Contributions and Classes

BREXIT Impacts

Ireland / United Kingdom Social Security arrangements from 1 January 2021.

The European Union and the United Kingdom agreed a Trade and Cooperation Agreement which contains a Protocol on Social Security to take effect from 1 January 2021. The Protocol provides for a wide range of social security issues into the future. On the 31 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:

• Item was unpublished or removed

For information on social welfare entitlements see:

• Brexit Information
• FAQs on DFA about Brexit

What is Pay Related Social Insurance (PRSI)?

Pay Related Social Insurance (PRSI) contributions are paid into the Social Insurance Fund (SIF) which helps pay for Social Welfare benefits and pensions.

Who pays PRSI?

With very few exceptions:

• all employees whether full-time or part-time, with reckonable earnings of €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 or in the case of a person born on or after 1 January 1958 who is aged between 66 and 70 years and has not been awarded the State Pension (Contributory), 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, with no additional self-employed income but who do have unearned income only, such as rental or investment income, may be liable for PRSI contributions on this income.

How is PRSI Calculated?

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 4.1% until 30 September 2025 and 4.2% from 1 October 2025 on all reckonable income). (*)

(*)For those returning PRSI through the Revenue self-assessed system, a blended or proportionate rate of 4.025% or a minimum payment of €537.50 will apply on their self-employed 2024 annual income (for 2025 income the rate will be 4.125% or min payment of €650) due to the change of rate during that year.

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.

PRSI Contribution Statement

To request a copy of your Irish social insurance record, please visit PRSI Contribution Statement

How are PRSI rates determined?

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 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

Deciding the correct PRSI Class

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.

Refunds

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:

Employees

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
• 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 Tax and Duty Manual Part 42-04-33 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 (PRSI Class E)
• 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:

Self-employed

In general, most 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:

For further details of the PRSI contribution collection system contact us on the above phone number.

Private/Public Sector Employments: 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. Only Community Employment and Job Initiative participants are covered by PRSI subclasses A8 and A9.

PRSI Class A Rates

Class A Benefits:

• Adoptive Benefit
• Benefit Payment for 65 year olds
• Carer’s Benefit
• Guardian’s Payment Contributory
• Health and Safety Benefit
• Illness Benefit
• Invalidity Pension
• Jobseeker's Benefit
• Jobseeker’s Pay-Related Benefit – from 31 March 2025
• 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 reckonable income is less than €38 per week from all employments
• people insured for Occupational Injuries Benefits only
• people whose employment is of a subsidiary nature or of inconsiderable extent.

PRSI Class J Rates

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.

PRSI Class E Rates

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

Public Sector Employments: 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.

PRSI Class B Rates

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.

PRSI Class C Rates

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.

PRSI Class D Rates

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.

PRSI Class H Rates

Class H Benefits:

• Adoptive Benefit
• Benefit Payment for 65 year olds
• Carer’s Benefit *
• Guardian’s Payment Contributory
• Health and Safety Benefit
• Illness Benefit
• Invalidity Pension
• Jobseeker's Benefit
• Jobseeker’s Pay-Related Benefit – from 31 March 2025
• 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*
• paid during service.

Non-employee income: Classes K, M, S and P

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 4.1% until 30 September 2025 (4.2% from 1 October 2025). 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 – Class M applies.

Class K, at 4.1% until 30 September 2025 (4.2% from 1 October 2025) 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.

PRSI Class K Rates

Class K Benefits:

No benefits under Class K.

PRSI Class M

People within CLASS M:

PRSI Class M applies to people with no contribution liability such as:

• employees under age 16,
• people in receipt of State Pension (Contributory), or those aged 70 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).

PRSI Class M Rates

Class M Benefits:

Occupational Injuries Benefits, in certain cases (e.g. employees under age 16)

PRSI Class S

People within CLASS S:

Self-employed people, including certain company directors and certain people with income from investments and rents. Members of a local authority. The minimum annual contribution for Class S is €650. (*)

(*)For those returning PRSI through the Revenue self-assessed system, a blended or proportionate rate of 4.025% or a minimum payment of €537.50 will apply on their self-employed 2024 annual income (for 2025 income the rate will be 4.125% or min payment of €650) due to the change of rate during that year.

PRSI Class S Rates

Class S Benefits:

• Adoptive Benefit
• Benefit Payment for 65 year olds
• Carer’s Benefit – from 1 January 2025
• 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 4.1% until 30 September 2025 (4.2% from 1 October 2025)(*) of all income in excess of €2500 whichever is the greater amount.

(*)For those returning PRSI through the Revenue self-assessed system, a proportionate rate of 4.025% (4.125% from 1 October 2025).

PRSI Class P Rates

Class P Benefits:

• Limited Jobseeker's Benefit (See relevant guideline)
• Limited Illness Benefit (See relevant guideline)
• Treatment Benefit

Current rates of PRSI and social welfare payments (SW19)