Employer legal obligations As an employer, you pay PRSI contributions for all employees aged between 16 and 65. In general, the payment is compulsory. In most cases, Revenue collects PRSI contributions through the PAYE income tax system. There are currently 11 different PRSI contribution classes. Each PRSI class divides into different subclasses. These subclasses determine how much PRSI contributions your employees must pay. You can find further PRSI information from the Gov.ie website (opens in new tab). There are no changes to the 2024 rates or thresholds from January 2024. They will remain the same as the 2023 rates and thresholds. How does PRSI calculate? PRSI is non-cumulative and calculates based on a period-by-period basis. It bases all calculations on an employee’s reckonable earnings in the current pay run. The calculation doesn't include pay accumulated from the beginning of the tax year. Reckonable earnings for PRSI purposes are: - Gross pay minus superannuation
or - PRSA and approved permanent health insurance
Reckonable earnings include: - Salary
- Wages
- Fees
- Commissions
- Bonuses
- Christmas boxes
- Overtime
- Pay during sickness
- Holiday pay
- Pay in lieu of holidays
- Benefit in kind, such as a company car
| Contribution class | Who belongs to this class? | Contribution subclasses | | A | Employees under the age of 66 in industrial, commercial and service-type employment. They will have reckonable pay of €38 or more per week from all work. This includes civil and public servants recruited from 6 April 1995.
In the case of subclasses A8 and A9: Community employment participants who have reckonable pay of €38 or more per week from all work. This includes public servants recruited from 6 April 1995. | AO, AX, AL, A1, A4, A6, A7, A8 and A9 | | B | If recruited before 6 April 1995: - Permanent and pensionable civil servants
- Registered doctors and dentists employed in the civil service
- Gardaí
| BO, BX and B1 | | C | If recruited before 6 April 1995: - Commissioned officers of the Defence Forces
- Members of the Army Nursing Service
| CO, CX and C1 | | D | Permanent and pensionable employees in the public service, other than those mentioned in Classes B and C, recruited before 6 April 1995. | DO, DX and D1 | | E | Ministers of religion employed by the Church of Ireland representative body | E | | H | NCOs and enlisted personnel in the Defence Forces. | HO, HX and H1 | | J | People with reckonable pay of less than €38 per week from all employments. A small number of employees are insurable at Class J, no matter how much they earn. For example: Employees aged 70 or over or people in subsidiary employment. | J0, J1 and J9 | | K | Public office holders, such as: - The president
- Members of the Oireachtas and the judiciary
- Certain military judges
- The attorney general
- The comptroller and auditor general
- Members of a local authority
- Certain members of the European parliament
| K1 | | M | Individuals with nil contribution liability, such as:
- Employees under age 16
- Those in receipt of occupational pensions or lump-sum termination payments
- Public office holders with a weekly income of less than €100 per week.
| M | | P | Share fishermen and share fisherwomen. Classified as self-employed and who are already paying PRSI under Class S. |
| | S | Self-employed people, including certain company directors. Certain people with income from investments and rent. | SO and S1 |
When you’re setting up an employee in Payroll, you must assign their PRSI class code. The employee’s particular work circumstances determine this code. You may be unsure of what PRSI code to use for an employee. | If you’re advised to put the employee on subclass | In Payroll, select the following PRSI code: | | AO, AX, AL or A1 | A1 | | A4, A6, or A7 | A4 | | A8 or A9 | A9 | | B0, BX or B1 | B1 | | C0, CX or C1 | C1 | | D0, DX or D1 | D1 | | H0, HX or H1 | H1 | | J0, J1 or J9 | J1 | | K1 | K1 | | M | M | | S0 or S1 | S1 |
When processing an employee’s pay details, Payroll assigns the correct PRSI subclass. It bases this on both of the following:- The employee’s PRSI code
- The employee’s reckonable earnings in that particular pay run
For example: you have a weekly-paid employee with PRSI code A1. They get the subclass AO if their weekly reckonable earnings in that period are between €38 and €352. If their weekly reckonable earnings are between €352.01 and €424, they’re assigned to the subclass AX. [BCB:299:UKI - Personal content block - Dane:ECB][BCB:305:UKI - Search override - Payroll IE:ECB] [BCB:276:UKI - hide back button:ECB] |