What is Pay Related Social Insurance (PRSI)?
PRSI is another deduction you’ll see on your payslip each time you’re paid. It’s a contribution to the social insurance fund, and most employees over 16 must pay it. You'll need to pay this whether you work full-time or part-time if you earn €38 or more per week.
Self-employed workers with an income of €5,000 a year or more aged 16 or over (and under pensionable age) are also liable for PRSI contributions. These contributions may give you an entitlement to claim benefits such as Jobseeker's Benefit, Illness Benefit, and State Pension. So for example, if you become unemployed and you have enough contributions, you may be able to claim the Jobseeker’s Benefit while you're looking for work.
How much PRSI do I need to pay?
How much PRSI you pay is largely based on your earnings and the type of work you do. Your employer will deduct your PRSI and calculate the amount based on your social insurance class.
PRSI is taken at source by your employer and collected by Revenue who, along with the Department of Social Protection, will keep a record of your contributions. If you’re wondering how much is deducted from your pay, then you can see this on on your payslip from employer.
Social insurance contributions are divided into different categories known as classes or rates of contribution. The class and rate of contribution you pay is calculated by the nature of your work. Here are the 11 different social insurance classes in Ireland based on your occupation:
| Class J |
Anyone earning less than €38 per week. People aged over 70 or people in subsidiary employment are always insurable at Class J, no matter how much they earn. Subsidiary employment for Class J is for example, people who are insurable at Class B, C, D or H in their main employment. Only Occupational Injuries Benefit is covered by Class J social insurance. |
| Class E | Ministers of religion employed by the Church of Ireland Representative Body. It covers all social insurance payments except Jobseeker's Benefit and Occupational Injuries Benefit. |
| Class B |
Civil servants and Gardaí recruited before 6 April 1995. Registered doctors and dentists employed in the Civil Service. Only covers only a limited number of social insurance payments. |
| Class C |
Commissioned Army Officers and members of the Army Nursing service recruited before 6 April 1995. Covers only a limited number of social insurance benefits. |
| Class D |
Permanent and pensionable employees in the public service other than those mentioned in Classes B and C recruited before 6 April 1995. Covers only a limited number of social insurance payments. |
| Class H |
Non-Commissioned Officers and enlisted personnel of the Defence Forces. Covers all social insurance payments except Occupational Injuries Benefit. |
| Class K |
Public office holders with an income of over €5,200 a year. People who pay PRSI on unearned income. Public office holders with weekly income of €100 or less are recorded under Class M. There are no social insurance payments for people insured under Class K. |
| Class M |
Employees with no liability to contribute to social insurance. Employees under 16 years of age and people with an income of €500 or less and insured in Class K. Class M covers certain contributors with Occupational Injuries Benefit. |
| Class S |
Class S applies to self-employed people including certain company directors, people in business on their own account and people with income from investments and rents. It covers a limited number of social insurance payments.
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| Class A |
Most employees in Ireland are Class A. This applies to employees in industrial, commercial, and service type roles under a contract of service with a reckonable pay of €38 or more per week. Also includes civil and public servants recruited from 6 April 1995. People on CE schemes pay a special contribution at Class A8/A9. |
| Class P | Sharefishermen or Sharefisherwomen classified as self-employed and already paying PRSI come under Class P. This class provides limited Jobseeker's Benefit, limited Illness Benefit and Treatment Benefit. |
Can I get a refund of my PRSI contributions?
You can only receive a refund of PRSI contributions in limited circumstances, usually in cases where contributions have been paid in error or paid at the wrong rate.
PRSI and unemployment
PRSI contributions are closely linked to social welfare benefits. By providing your employer with your PPS number, your social welfare contributions can be recorded alongside any contributions you’ve paid during previous employment.
However, if you’ve been out of work for several years, you may not immediately qualify for short-term social welfare payments such as Illness Benefit. You will, however, be covered immediately for Injury Benefit if you are unable to work due to an accident at work.
The time it takes to qualify for social welfare benefits depends on the type of benefit and your circumstances before returning to work.
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