Pay Related Social Insurance (PRSI)

Employers as well as employees over 16 years of age and under 66 pay compulsory contributions to Ireland’s Social Insurance Fund. The contribution that you pay depends on your earnings and occupation and is called a Pay Related Social Insurance (PRSI) contribution.

As an employee, your PRSI contributions will be deducted from your wages by your employer and collected by the Irish Revenue Department under the Pay As You Earn (PAYE) system. PRSI is calculated on your reckonable pay which is basically your gross pay plus notional pay. In certain cases, if your income falls below a certain amount you do not have to pay a social insurance contribution, however, you will still be covered by social insurance because your employer must pay social insurance for you.

If you are self-employed, you pay Class S social insurance contributions directly to the Revenue Commissioners. From 2014 unearned income such as rents, investments, dividends, and interest on deposits and savings also became liable for PRSI. Once collected from you, Revenue Commissioners then pay this money into the Social Insurance Fund. The Social Insurance Fund is made up of two accounts:

• Current account: This account is managed by the Minister for Social Protection and consists of monies collected from people in employment. It is used to fund social insurance payments.
• Investment account: This account is managed by the Minister for Finance. This is a savings account.

PRSI Classes

There are currently 11 different PRSI classes – A, B, C, D, E, H, J, K, M, S and P. The social insurance payments to which you may become entitled depend on the PRSI class you are in.

Each PRSI class is divided into different subclasses, however, these subclasses do not affect your entitlements under the social insurance system. They only relate to the amount of PRSI which you or your employer must pay.

PRSI Contribution Week

The PRSI contribution week starts on 1 January each year. Your working week may not be the same as the PRSI contribution week.

Rates

The amount of PRSI you and your employer pay will depend on your earnings and the class you are insured under. Refer to welfare.ie for the current rates.

PRSI Refunds

If the wrong rate of PRSI is deducted from your wages you are entitled to a refund. To get a refund either you or your employer should contact the Refunds Section in the Department of Social Protection.

PRSI Refunds Section
Gandon House,
Amiens Street,
Dublin 1

Telephone (01) 673 2586

You will be sent a refund application form to fill out.

Employing Family Members and PRSI

Most employees are liable to pay PRSI, but there are exceptions to this rule in the case of certain family employment. This term is used to describe a situation in which a self-employed sole trader either employs, or is assisted in the running of the business by a specified family member(s). However, if the business does not operate on a sole trader basis, for example if it is a limited company or a partnership, it is not considered family employment.

To find out more about the family employment, refer to welfare.ie for an information pack.

Social Insurance Payments and Benefits

A wide range of benefits are available to people who have paid social insurance. Your entitlement to these benefits depends on a number of conditions as well as the social insurance contribution requirement. Depending on what payment you are applying for, the social insurance qualifying criteria varies. In general, when you apply for a social insurance payment the following will be examined:

• What class or classes of social insurance you have paid.
• Your age when you started making social insurance contributions (this applies in the case of State pensions).
• The number of paid and/or credited contributions you have made since entering insurable employment
• The number of contributions paid and/or credited in the relevant tax year before the benefit year in which you make the claim.
• The relevant tax year is the second last complete tax year before you make a claim.
• The yearly average number of contributions in the case of some pensions.

The social insurance payments available include:

• Jobseeker’s Benefit
• Illness Benefit
• Maternity Benefit
• Adoptive Benefit
• Health and Safety Benefit
• Invalidity Pension
• Widow’s, Widower’s or Surviving Civil Partner’s (Contributory) Pension
• Guardian’s Payment (Contributory)
• State Pension (Contributory)
• Treatment Benefit
• Occupational Injuries Benefit
• Carer’s Benefit

Maintaining Your Social Insurance

If you leave the workforce, it is important that you keep your social insurance record active. To protect your social insurance record and keep it active, you should contact the Department of Social Protection welfare.ie to check if you can get credited contributions. It may be possible in certain circumstances for you to make voluntary contributions.

Ireland also has social security arrangements with other countries that allow you to combine social insurance contributions that you have paid in Ireland with social insurance contributions that you have paid in another country. This can help you to qualify for a social insurance payment in Ireland or in a country with whom Ireland has a social security arrangement.

All records of your insurance contributions are kept and managed by the PRSI Records section in the Department of Social Protection. The Department is responsible for the payments made as a result of your social insurance contributions. You can request a copy of your social insurance record online. To check your social insurance record, you will need your Personal Public Service Number (PPSN). This number is a unique identification number which you need when dealing with state agencies.