Pay Related Social Insurance (PRSI)

Main changes for 2012

  • Employer PRSI relief on employee pension contributions as been removed.

Main changes for 2011

  • Employee’s annual earnings ceiling has been abolished. PRSI is payable on all income.
  • The Health Contribution has been abolished and replaced with a new Universal Social Charge.
  • The self-employed rate (Class S) is increased to 4% and the Class S ‘floor’ increased from €3,174 to €5,000.

Main 2011 PRSI Rates for employments, proprietary directors and self-employed

CLASS A – private and public sector employments
Sub-class Weekly pay Band How much of Weekly Pay All Income All Income
Employee Employer
A0 €38 – €352 All Nil 4.25%
inclusive
AX €352.01 – €356 First €127 Nil 4.25%
inclusive Balance 4.00% 4.25%
AL €356.01 – €500 inclusive First €127 Nil 10.75%
Balance 4.00% 10.75%
A1 More than €500 First €127 Nil 10.75%
Balance 4.00% 10.75%

Note: the above table excludes Community Employments

CLASS S – self-employed and proprietary directors
Subclass Weekly pay Band How much of Weekly Pay All income from self employment
S0 Up to €500 inclusive All 4%
S1 More than €500 inclusive All 4%

Note: Class S covers self-employed people, including certain company directors, and certain people with income from investments and rent.