State Pension (Contributory)

The pay related social insurance (PRSI) class for people aged 66 years and over when using Sage 50 Payroll Ireland.

Before 1 January 2024, a person's PRSI class changed to J1 when they turned 66 and no longer paid PRSI contributions. The type of state pension available was based on the amount of PRSI contributions they've paid up to that point.

From 1 January 2024, a person's PRSI class doesn't automatically change to J1 when they turn 66. Instead, their class changes to J1 when they either:

• Turn 70 years of age
• Choose to drawdown their state pension

This change doesn't apply to people aged 66 or over before 1 January 2024. They continue to be on PRSI class J1, regardless of the circumstances regarding their state pension. This is people with a date of birth before 1 January 1958.

 NOTE: In v27.3 and above when you retrieve RPNs, if the employee is in receipt of a state pension and not on PRSI code J1, M or NA, a warning appears. 

RPNs show whether an employee receives a State Pension.

• PRSI changes from 1 January 2024