Pay Related Social Insurance (PRSI)

Understanding PRSI: Ireland's Social Insurance System

In Ireland, a system called Pay Related Social Insurance, or PRSI, is in place to fund essential social welfare benefits and pensions. Essentially, it's a contribution that most working individuals make to the government's Social Insurance Fund.

If you're an employee aged 16 or over, you'll likely be paying PRSI. The amount you contribute is tied to your earnings and the type of work you do. Your employer plays a key role, as they deduct your PRSI directly from your wages and also make separate employer contributions. Self-employed individuals must also make PRSI contributions.

The amount of PRSI you pay depends on your earnings and your social insurance class. If you're a Class A employee earning €352 or less per week, you won't pay any PRSI, although your employer still contributes. If you earn more, you'll pay a percentage of your earnings, with a tapered credit available for those in a certain income bracket. Employers also have their own PRSI contributions, with different rates depending on earnings.

The majority of employees pay PRSI at a rate of 4.1%.

You can view the full list of rates in the Department of Social Protection’s publication (pdf).

So how does PRSI actually work?

Your employer needs your PPS number to make sure your contributions are recorded correctly. Revenue handles the collection of all PRSI, and both your employer and the Department of Social Protection keep track of your contributions. You're also legally entitled to a payslip that clearly shows any PRSI deductions.

What happens during periods of illness?

If your employer doesn't pay you while you're sick, you won't pay PRSI. However, you might be eligible for credited contributions if you're receiving certain benefits. If your employer does pay you during sick leave, PRSI still applies, but the calculation varies depending on how Illness Benefit is handled.

Other considerations

If your employer fails to pay the correct PRSI, they're held responsible for any outstanding amounts, which can be recovered by the State. They might also have to repay social welfare payments you received due to their non-compliance. Regular inspections are conducted by the Department of Social Protection to ensure employers are following the rules.

PRSI also has implications for employees working abroad. Under certain EU regulations and bilateral agreements, you might continue to pay Irish PRSI even while working temporarily in another country. A1 certificates are important for those working in the EU. There are also rules for people who are sent to work in Ireland.

You can check your PRSI record through your employer, Revenue's MyAccount, or MyWelfare.ie.