Pay Related Social

Insurance (PRSI)
Contribution Rates 2021
and User Guide
Contents
Introduction 3

PRSI Contribution Classes 3

Pay Related Social Insurance (PRSI) Credit 4

How to calculate the PRSI Charge for Classes A and H 4

PRSI Calculations 5

PRSI Classes 6

Class A 6

Class B 7

Class C 7

Class D 7

Class E 8

Class H 8

Class J 8

Class K 9

Class M 9

Class P 9

Class S 10

Earnings bands and subclasses 11

Summary of PRSI classes 12

Important information 13

Pensions Reminder 16

2
Introduction
Pay Related Social Insurance (PRSI) contributions are paid into the Social Insurance Fund (SIF)
which helps pay for benefits and pensions.
Most employers and employees, aged between 16 years and the pension age which is currently
66, pay PRSI contributions into the SIF.
In general, the payment of PRSI is compulsory. The term ‘insurable employment’ is used to
describe employment that is liable for PRSI contributions. Some people who have unearned
income are also liable for PRSI on that income.

PRSI Contribution Classes

PRSI contributions are divided into different categories, known as ‘PRSI classes’. This determines
the rate of PRSI you are liable to pay, or your ‘rate of contribution’.
The class and rate of contribution you pay is determined by the nature of your employment and
your weekly earnings.
The class of PRSI you pay determines the social welfare benefits for which you may qualify. The
range of benefits includes for example the State Pension Contributory, Jobseeker’s Benefit and
Illness Benefit. An entitlement to a benefit is dependent on a person meeting specific criteria.

Further details of PRSI classes, rates of contribution and benefits payable can be found at www.
gov.ie/prsi

P RSI Contribution Rates and User Guide

3
Pay Related Social Insurance (PRSI) Credit
Employees
A tapering Pay Related Social Insurance (PRSI) Credit exists for Class A and Class H employees
earning between €352.01 and €424 a week. The PRSI Credit reduces the amount of PRSI charged
a week.
The amount of PRSI Credit depends on gross weekly earnings. At gross weekly earnings of
€352.01 the maximum PRSI Credit of €12 per week applies. For earnings between €352.01 and
€424, the maximum weekly PRSI Credit of €12 is reduced by one sixth of earnings in excess of
€352.01. Once earnings exceed €424 the PRSI credit no longer applies.

How to calculate the PRSI Charge for Classes A

and H
„ Class A employee PRSI is calculated at 4% of gross weekly earnings.
„ Class H PRSI is calculated at 3.9% of gross weekly earnings.
„ For gross earnings between €352.01 and €424 a week, the employee PRSI charge is reduced
by the PRSI Credit.
„ The amount of the PRSI Credit depends on your gross weekly earnings.
„ At gross weekly earnings of €352.01, the maximum PRSI Credit of €12 a week applies.
„ For earnings between €352.01 and €424, sub-classes AX and AL, the maximum weekly PRSI
Credit of €12 is reduced by one-sixth of earnings in excess of €352.01.
„ The following example shows how to calculate the PRSI Credit and the new PRSI charge for
gross weekly earnings of €377.

PRSI Credit:
Maximum PRSI Credit €12.00
One-sixth of earnings in excess
of €352.01
(377.00 – 352.01 = 24.99/6)
(€4.17)
Reduced PRSI Credit €7.83
Calculate the PRSI @ 4% €15.08
Deduct the reduced PRSI Credit on €7.83
€377 from the 4% PRSI charge
2021 Weekly PRSI Charge €7.25

To calculate the PRSI charge for Class H, follow the steps above replacing 4% with 3.9%.

Note: The calculation of the PRSI charge, and accordingly the PRSI Credit, is based
on weekly earnings.
4
PRSI Calculations
For illustrative purposes only, the following table sets out the PRSI charge for Class A employees
at €5 intervals for gross weekly earnings between €352.01 and €424.

Class A PRSI charge for gross earnings between €352.01 and €424

PRSI at PRSI
Calculate PRSI Credit
4% charge
One-sixth
Gross PRSI
Gross of gross
earnings in Maximum Class A charge (4%
weekly earnings in PRSI Credit
excess of PRSI Credit PRSI at 4% charge less
earnings excess of (€)
€352.01 (€) (€) PRSI Credit)
(€) €352.01
(€) (€)
(€)

B D
A C E E-D
(A/6) (C-B)

352.01 0.00 0.00 12.00 12.00 14.08 2.08

355.00 2.99 0.50 12.00 11.50 14.20 2.70

360.00 7.99 1.33 12.00 10.67 14.40 3.73

365.00 12.99 2.17 12.00 9.84 14.60 4.77

370.00 17.99 3.00 12.00 9.00 14.80 5.80

375.00 22.99 3.83 12.00 8.17 15.00 6.83

380.00 27.99 4.67 12.00 7.34 15.20 7.87

385.00 32.99 5.50 12.00 6.50 15.40 8.90

390.00 37.99 6.33 12.00 5.67 15.60 9.93

395.00 42.99 7.17 12.00 4.84 15.80 10.97

400.00 47.99 8.00 12.00 4.00 16.00 12.00

405.00 52.99 8.83 12.00 3.17 16.20 13.03

410.00 57.99 9.67 12.00 2.34 16.40 14.07

415.00 62.99 10.50 12.00 1.50 16.60 15.10

420.00 67.99 11.33 12.00 0.67 16.80 16.13

424.00 71.99 12.00 12.00 0.00 16.96 16.96

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PRSI Classes
Pr ivate and pub lic s e c t or e m ploym e n t s
This covers persons under 66 years of age in industrial, commercial and

Class A service-type employments who are employed under a contract of service

who have reckonable pay of €38 or more a week from all employments
as well as public and civil servants recruited from 6 April 1995.
Weekly pay is an employee’s pay plus notional pay (if applicable).

All income
How much of
Subclass Weekly pay band
weekly pay
Employee Employer

AO €38 - €352 inclusive All Nil 8.80%

AX €352.01 - €398
inclusive
All 4.00% 8.80%

AL €398.01 - €424
inclusive
All 4.00% 11.05%

A1 More than €424 All 4.00% 11.05%

Share-based remuneration may in certain circumstances be subject to employee’s PRSI.

Employer’s PRSI is not chargeable on share-based remuneration.
PRSI Credit applies to sub-classes AX and AL.

Community Employment participants

All income
How much of weekly
Subclass Weekly pay band
pay
Employee Employer

A8 Up to €352 inclusive All Nil 0.50%

A9 More than €352 All 4.00% 0.50%

PRSI Credit applies on earnings up to €424.

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 Publ ic sec t or e m ploym e n t s
This covers permanent and pensionable civil servants, registered doctors
Class B and dentists employed in the civil service and Gardaí recruited prior to
6 April 1995.

How much of weekly All income

Subclass Weekly pay band
pay Employee Employer

BO Up to €352 inclusive All Nil 2.01%

BX €352.01 - €500
inclusive
All 0.90% 2.01%

B1
First €1,443 0.90% 2.01%
More than €500
Balance 4.00% 2.01%

Class C This covers commissioned officers of the Defence Forces and members
of the Army Nursing Service recruited before 6 April 1995.

How much of weekly All income

Subclass Weekly pay band
pay Employee Employer

CO Up to €352 inclusive All Nil 1.85%

CX €352.01 - €500
inclusive
All 0.90% 1.85%

C1
First €1,443 0.90% 1.85%
More than €500
Balance 4.00% 1.85%

This covers permanent and pensionable employees in the public service,

Class D other than those mentioned in Classes B and C, recruited before
6 April 1995.

How much of weekly All income

Subclass Weekly pay band
pay Employee Employer

DO Up to €352 inclusive All Nil 2.35%

DX €352.01 - €500
inclusive
All 0.90% 2.35%

D1
First €1,443 0.90% 2.35%
More than €500
Balance 4.00% 2.35%

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 Private sector employments
This relates to Minsters of Religion employed by the Church of Ireland
Class E Representative Body. PRSI is paid under the Social Collection System of the
Department of Social Protection.

How much of weekly All income

Subclass Weekly pay band
pay Employee Employer

EO Up to €352 inclusive All Nil 6.87%

E1 More than €352* All 3.33% 6.87%

*A tapered employee PRSI Credit of €10 per week applies on earnings up to €412.
Publ ic sec t or e m ploym e n t s

Class H This covers NCOs and enlisted personnel of the Defence Forces.

How much of weekly All income

Subclass Weekly pay band
pay Employee Employer

HO Up to €352 inclusive All Nil 10.35%

HX* €352.01 - €424

inclusive
All 3.90% 10.35%

H1 More than €424 All 3.90% 10.35%

*A tapered PRSI credit applied to subclass HX.

Private sector employments
This relates to most people with reckonable pay of less than €38 a week

Class J from all employments. However, a small number of employees are insurable
at Class J no matter how much they earn. For example, employees of
pensionable age, currently 66 or over, or people in subsidiary employment.

How much of weekly All income

Subclass Weekly pay band
pay Employee Employer

JO Up to €500 inclusive All Nil 0.50%

J1 More than €500 All Nil 0.50%

Share-based remuneration may, in certain circumstances, be subject to employee PRSI. Employer’s

PRSI is not chargeable on share-based remuneration.
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 Certain public office holders pay PRSI at a rate of 4%, where their
income is over €5,200 a year. They should be returned at Class K. Public
Class K office holders with weekly income of €100 or less should be returned at
Class M. Class K may also apply in other circumstances, see Summary of
PRSI Classes below for details.

How much of weekly All income

Subclass Weekly pay band
pay Employee Employer

Record under Up to €100 inclusive All Nil Nil

Class M

K1 More than €100 All 4.00% Nil

Class M relates to people with a nil contribution liability. For example,

persons under age 16, persons of pensionable age (currently 66 or
Class M over) including those previously liable for Class S, persons in receipt of
occupational pensions or lump-sum termination payments (on that part of
the income only), and people within Class K with no contribution liability.

How much of weekly All income

Subclass Weekly pay band
pay Employee Employer

M All income All Nil Nil

Fishermen and Fisherwomen

This relates to share fishermen and fisherwomen who are classified as

Class P
self-employed and who already pay PRSI under Class S. Class P is an
optional contribution and gives access to limited jobseeker’s benefit,
limited illness benefit and treatment benefit. The 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.

Subclass How much of annual pay All income

P (optional)
First €2,500 a year Nil

More than €2,500 a year 4.00%

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 Self-employed
This relates to self-employed people, including certain company

Class S directors, certain people with income from investments, rent and certain
local authority members. The minimum annual contribution for Class S is
€500.

How much of weekly All income from

Subclass Weekly pay band
pay Self-Employment

SO Up to €500 inclusive All 4.00%

S1 More than €500 All 4.00%

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 Ear nings b an d s an d s u b c las s e s
Subclass Weekly pay band Fortnightly pay band Monthly pay band

AO €38 to €352 €76* to €704 €165* to €1,525

AX** €352.01 to €398 €704.01 to €796 €1,525.01 to €1,673

AL** €398.01 to €424 €796.01 to €848 €1,673.01 to €1,837

A1 More than €424 More than €848 More than €1,837

A8 Up to €352 Up to €704 Up to €1,525

A9** More than €352 More than €704 Up to €1,525

BO Up to €352 Up to €704 Up to €1,525

BX €352.01 to €500 €704.01 to €1,000 €1,525.01 to €2,167

B1 More than €500 More than €1,000 More than €2,167

CO Up to €352 Up to €704 Up to €1,525

CX €352.01 to €500 €704.01 to €1,000 €1,525.01 to €2,167

C1 More than €500 More than €1,000 More than €2,167

DO Up to €352 Up to €704 Up to €1,525

DX €352.01 to €500 €704.01 to €1,000 €1,525.01 to €2,167

D1 More than €500 More than €1,000 More than €2,167

EO Up to €352 Up to €704 Up to €1,525

E1** €352.01 to €500 More than €704 More than €1,525

HO Up to €352 Up to €704 Up to €1,525

HX** €352.01 to €424 €704.01 to €848 €1,525.01 to €1,837

H1 More than €424 More than €848 More than €1,837

JO Up to €500 Up to €1,000 Up to €2,167

J1 More than €500 More than €1,000 More than €2,167

K1 More than €100 More than €200 More than €433

M All income All income All income

P More than €48 More than €96 More than €208

SO Up to €500 Up to €1,000 Up to €2,167

S1 More than €500 More than €1,000 More than €2,167

* This threshold only applies to Class A employees whose total earnings in each week of the fortnight or
month are at least €38.
** PRSI Credit applies.
Subclasses A8 and A9 are only used for Community Employment (CE) participants. For further
information contact your local Intreo Centre or Social Welfare Office.
11
 Summ ary of P RS I c las s e s
Class A employment
„ The pay or income threshold to determine whether employees pay PRSI at Class A or J
remains at €38.
„ Employees paid €38 to €352 inclusive in a week should be recorded under subclass AO.
„ For gross earnings between €352.01 and €424, the amount of the PRSI charged at 4% is
PRSI USER GU IDE
reduced by a tapered weekly PRSI Credit. See page 4 for further details.
„ From 1 January 2021 the €395.01 threshold increased to €398.01. Employees paid
€352.01 to €398 inclusive in a week should be recorded under subclass AX.
„ From 1 January 2021 the €395.01 threshold increased to €398.01. Employees paid
€398.01 to €424 inclusive in a week should be recorded under subclass AL.
„ Community Employment and Jobs Initiative supervisors and employees on apprenticeship
schemes are insurable at Class A in the normal way.
Class J employment
The Class J contribution normally relates to people paid less than €38 per week from all
employments. However, a small number of employees are insurable at Class J no matter how
much they are paid. For example, employees of pensionable age, currently 66 years or over
and people in subsidiary employment.
Subsidiary employments
Subsidiary employment, which is insurable at Class J regardless of earnings, is defined in
legislation.
PRSI for the self-employed
Self-employed people, other than self-employed company directors, must register with the
Revenue Commissioners for PRSI purposes. Under the self-assessment system, PRSI is paid to
the local tax office together with any other payment due. Self-employed company directors pay
their PRSI under the PAYE system.
Class K contributions
Modified rate contributors, for example civil and public servants recruited prior to 6 April
1995, with self-employed earned income from a profession or a trade and any other unearned
income are liable to PRSI at Class K on that income. Employed contributors and occupational
pensioners, under pensionable age, currently 66 years, whose only additional income is
unearned income may be liable to PRSI on such income at Class K.
Minimum and flat rate self-employed payments
„ Self-employed contributors with annual income of €5,000 or over pay Class S PRSI at the
rate of 4%, subject to a minimum payment of €500.
„ Those who are no longer covered by compulsory PRSI, either as an employee or as a
self-employed person, and are under pensionable age, currently 66 years, may opt to
become insured on a voluntary basis if they satisfy certain conditions. The amount of a
voluntary contribution in any contribution year is calculated as a percentage of reckonable
income, subject to a minimum annual payment.
„ The minimum annual rate for persons who last paid PRSI at Classes A, E or H is €500. The
minimum annual rate for persons who last paid PRSI at Classes B, C or D is €250. There is
a flat rate of €500 for persons who last paid PRSI at Class S.
For more information, contact Client Eligibility Services on (01) 471 5898
For more information visit www.gov.ie/volcon.
12
 I mpor tan t in form at ion
Components of the PRSI contribution
The Pay Related Social Insurance (PRSI) contribution is made up of a number of different
components including:
„ Social insurance at the appropriate percentage rate for employees and employers, which varies
according to the pay and PRSI Class of the employee and benefits for which they are insured.
„ The 1% National Training Fund Levy, included in the employer’s contribution in Classes A and H.
Levels of payment
PRSI contributions will be payable as follows:
„ At the appropriate percentage rates for employees on all reckonable earnings.
„ On all reckonable pay, the employer’s share (social insurance and the 1% National Training Fund
Levy in classes A and H) is due.
„ Class S, social insurance at 4.00% on all reckonable income.
The National Training Fund Levy is included in the contribution rates outlined on pages 6 to 11
where applicable.
Reckonable pay
PRSI is calculated on the employee’s reckonable pay. Reckonable pay is the gross pay plus notional
pay or benefit in kind if applicable.
„ The net value of share-based remuneration is to be treated as notional pay for the purposes of
calculating Employee PRSI only.
„ Employee PRSI only is payable on share-based remuneration. There is no Employer PRSI
chargeable on gains from share-based remuneration.
„ The obligation to deduct and remit PRSI in respect of share-based remuneration generally rests
with the employer. Accordingly the PRSI payable should be deducted by the employer through
payroll along with other PRSI liabilities and remitted to the Collector-General.
„ Different arrangements may apply in the case of PRSI on gains from the exercise of certain share
options.
More detailed information on the treatment of share-based remuneration for PRSI purposes is
available by visiting www.gov.ie/prsi and www.revenue.ie/benefit-in-kind
PRSI is fully chargeable on payments by private sector employees in respect of:
„ Superannuation contributions.
„ Permanent health benefit schemes, including income continuance schemes.
„ Revenue approved schemes established under irrevocable trusts, overseas pension schemes
and other Revenue exempt approved schemes.
„ Personal Retirement Savings Accounts.
„ Deductions in respect of Revenue approved retirement funds.
Civil and Public Service employers do not pay Employer PRSI on the Additional Superannuation
Contribution, previously known as the pension levy. Employee PRSI is chargeable.

13
PRSI contribution weeks
A contribution week is each successive period of seven days starting on 1 January each year. Week
1 is the period from 1 to 7 January inclusive, week 2 from 8 to 14 January and so on. For 2021, the
contribution week starts on a Friday and ends on a Thursday.
A contribution at the appropriate class should be awarded to an employee for each contribution week
or part of one for which they are in insurable employment.
Voluntary contributions
People who were insured at Classes A, B, C, D, H or S and who are no longer insurably employed may
opt to pay Voluntary Contributions to provide cover for their pensions.
Applications must be made within 60 months from the end of the PRSI contribution year in which
a PRSI contribution was last paid or credited. For more information on voluntary contributions, visit
www.gov.ie/volcon or contact:
Voluntary Contributions Section
Client Eligibility Services
Department of Social Protection
Social Welfare Services Office
Cork Road
Waterford
Telephone: (01) 471 5898
If calling from outside of Ireland please call +353 1 471 5898.
Holiday pay
If you pay an employee for a period of more than a week, it is important to determine the subclass
correctly for each week.
Example: An employee receives two weeks holiday pay with a current week’s wages. To determine
the correct PRSI subclass, calculate the pay for each week and record the contributions accordingly.
This arrangement also applies when an employer pays holiday pay when an employee leaves the
employment.
Sick pay
Whether your employer pays you or not while you are out sick from work, you should claim Illness
Benefit from the first day of your illness. If you get sick pay from your employer, you should ask your
employer what administrative arrangements are in place while you are claiming Illness Benefit or Injury
Benefit. The claim process allows a person to indicate that payment can issue directly to the employer
if this is appropriate.
Taxation of Illness Benefit, Jobseeker’s Benefit and Pandemic Unemployment Payment
Illness Benefit (IB), Jobseeker’s Benefit (JB) and the Pandemic Unemployment Payment (PUP) are
considered as income for tax purposes and are taxed from the first day of payment, with the exception
of non-taxable payments for qualified children on IB and JB. There are no increases for qualified
children on PUP.
Revenue collect any tax due on these payments by reducing the employee’s tax credits and rate bands
by the amount of the IB, JB and PUP received. These payments are not liable to Universal Social
Charge (USC) or PRSI. The employee’s USC rate bands will not be amended.
The payments are taxable in real-time. Revenue will collect any tax due on these payments by reducing
the employee’s tax credits and rate bands by the amount of the payment received and upon return to
employment a revised Revenue Payroll Notification (RPN) will issue to employers.

14
Maternity Benefit, Paternity Benefit, Parent’s Benefit, Adoptive Benefit and Health and Safety
Benefit
Maternity Benefit, Paternity Benefit, Parent’s Benefit, Adoptive Benefit and Health and Safety Benefit
payments are taxable in full. These benefits are exempt from USC and PRSI.
Individuals who pay their tax through the PAYE system will, where possible, automatically have their
annual tax credits and rate bands reduced by the amount of these payments. Revenue will receive
details of the benefit from the Department of Social Protection. Employers will be advised by the
Revenue Commissioners of the adjusted tax credits and rate bands through the issue of a revised
Revenue Payroll Notification (RPN).
If you have any enquiries about taxation of social welfare benefits, contact your local tax office or visit
www.revenue.ie/taxation-of-social-welfare-payments.aspx
Lump sum payments
Lump sum payments made to employees when they leave employment are not regarded as reckonable
pay for PRSI purposes and should be recorded under Class M. These include redundancy, gratuities and
ex-gratia payments.
Maintenance payments
A separated person may claim a refund of PRSI on legally enforceable maintenance payments made
to their ex-spouse or partner. The PRSI due will be re-calculated on the reckonable pay or income
reduced by the amount of maintenance payment. Any excess PRSI paid will be returned by claiming a
refund after year end from the PRSI Refunds Section, Department of Social Protection, Gandon House,
Amiens Street, Dublin 1, D01 A361. Telephone: (01) 673 2586.
Personal Public Service (PPS) Number
If you need assistance in tracing the Personal Public Service (PPS) Number for your employees, please
have them contact Client Identity Services on (01) 704 3281.
Recording of contributions
For the year 2013 and subsequent years, the gross pay for each employee should include any taxable
benefit (notional pay) received by that employee during the year. In addition, the total amount of
taxable benefits in the year for all employees should be recorded.
Local Authority Members
Since 1 January 2017 local authority members pay PRSI at Class S. This entitles them to the full range
of Class S benefits. Local authority members who are modified rate contributors will continue to pay
Class K on their local authority income, while those who are of pensionable age, currently 66 or over
will not pay a PRSI contribution.
If you need help
Further information on PRSI Rates is available, including a range of information for employers, on our
website at www.gov.ie/SWrates

15
Pensions Reminder
If you have employees approaching retirement age it is important that they apply on
time for their pension: three months prior to reaching pensionable age.
A person may continue working after age 66 and also get this pension from the Department of
Social Protection. On reaching age 66 an employee is liable for PRSI at Class J only.
Self-employed people who pay Class S PRSI contributions can also continue to work and qualify for
this payment provided that their social insurance liabilities are in order. People who are liable for
Class S PRSI contributions and who are approaching age 66 should check with their local Revenue
Office to ensure their tax affairs are in order to avoid delays.

How to apply
Application forms are available from your local Intreo Centre, Social Welfare Office, any Citizens
Information Centre or Post Office.
They are also available to download from our website at www.gov.ie/spc

Taxation
State Pension (Contributory) is liable to tax and any queries in relation to the taxation of this
payment should be made to your local Revenue Office.

16
 www.gov.ie/dsp

Produced by For more information

Communications and Customer Services Unit • Visit www.gov.ie/dsp; or
Department of Social Protection
• Contact your local Intreo Centre,
Áras Mhic Dhiarmada
Social Welfare Office or any
Store Street
Citizens Information Centre.
Dublin 1
D01 WY03 You can find the name and address
of your local Intreo Centre or Social
Welfare Office by visiting
www.gov.ie/intreo

This booklet is intended as a guide only and is not a legal interpretation.

00K 09-21 SW14 Edition: September 2021
17