Publication - Advance Notice of PRSI Changes For Computer Users 2008
Information Services
Social Welfare Services Office
College Road
Sligo
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2008
ADVANCE NOTICE OF PRSI CHANGES FOR COMPUTER USERS
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This notice contains rate changes announced in the December 2007 Budget.
Changes are effective from 1 January 2008.
Employee’s Annual Earnings Ceiling
The employee’s annual earnings ceiling (above which they pay no social insurance contributions) has increased from €48,800 to €50,700.
Employee income thresholds
The threshold for employee PRSI has increased from €339 a week to €352 a week.
The threshold for payment of the 2% Health Contribution has increased from €480 a week to €500 a week.
There is no change to the additional 0.5% Health Contribution on earnings exceeding €1,925 per week (equivalent to €3,850 per fortnight and to €8,342 per month).
The annual earnings threshold for the Health Contribution has increased from €24,960 to €26,000.
Employee's PRSI-Free Allowance
The PRSI-Free Allowance for employees in Classes A and H with weekly earnings of more than €339 remains at €127 per week and at €26 per week for all employees in Classes B, C and D.
For employees paid other than weekly, alternatives to the weekly PRSI Free-allowance are:
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Classes
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A
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B,C,D
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Fortnightly
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€254
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€52
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Monthly
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€551
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€113
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Self-Employed PRSI
The minimum annual contribution for Class S remains at €253.
Earnings bands and subclasses
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Subclasses
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A0
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A6, A8, B0, C0, D0 & H0
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Weekly
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€38 to € 352
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€352 or below
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Fortnightly
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€76* to €704
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€704 or below
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Monthly
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€165* to €1,525
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€1,525 or below
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* This threshold only applies to Class A employees, whose total earnings in each week of the fortnight or month are at least €38.
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Subclass
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AX
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Weekly
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€352.01 to €356
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Fortnightly
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€704.01 to €712
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Monthly
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€1,525.01 to €1,543
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Subclass
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AL
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Weekly
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€356.01 to €500
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Fortnightly
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€712.01 to €1,000
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Monthly
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€1,543.01 to €2,167
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Subclasses
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A7, BX, CX, DX and HX
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A9
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JO, M, and SO
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Weekly
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€352.01 to €500
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greater than €352
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€500 or below
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Fortnightly
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€704.01 to €1,000
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greater than €704
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€1,000 or below
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Monthly
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€1,525.01 to €2,167
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greater than €1,525
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€2,167 or below
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Subclasses
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A1, A2, A4 and A5
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Weekly
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over €500
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Fortnightly
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over €1,000
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Monthly
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over €2,167
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PRSI Contribution Rates From 1 January 2008
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Non Cumulative Weekly Earnings Band
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PRSI Subclasses
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How Much Of Weekly Earnings
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Cumulative Earnings Ceilings
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First €50,700
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Over €50,700
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EE %
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ER %
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EE+ER %
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EE %
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ER %
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EE+ER %
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Private And Some Public Sector Employments
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Up to €37.99
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J0*
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ALL
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0
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0.50
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0.50
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0
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0.50
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0.50
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€38 - €352
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AO
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ALL
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0
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8.50
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8.50
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0
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8.50
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8.50
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€352.01 - €356
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AX
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First €127
Balance
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0
4.00
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8.50
8.50
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8.50
12.50
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0
0
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8.50
8.50
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8.50
8.50
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€356.01 - €500
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AL
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First €127
Balance
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0
4.00
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10.75
10.75
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10.75
14.75
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0
0
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10.75
10.75
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10.75
10.75
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More than €500
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A1
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First €127
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2.00
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10.75
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12.75
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2.00
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10.75
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12.75
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A1
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€127.01 to €1,925
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6.00
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10.75
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16.75
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2.00
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10.75
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12.75
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A1
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Balance
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6.50
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10.75
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17.25
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2.50
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10.75
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13.25
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A2
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First €127
Balance
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0
4.00
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10.75
10.75
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10.75
14.75
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0
0
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10.75
10.75
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10.75
10.75
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Use the following subclasses (A6, A7, A4 and A5) only for approved Employees under the Employer's PRSI Exemption Scheme.
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Up to €352
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A6
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ALL
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0
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0
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0
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0
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0
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0
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€352.01 - €500
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A7
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First €127
Balance
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0
4.00
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0
0
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0
4.00
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0
0
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0
0
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0
0
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More than €500
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A4
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First €127
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2.00
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0
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2.00
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2.00
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0
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2.00
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A4
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€127.01 to €1,925
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6.00
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0
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6.00
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2.00
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0
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2.00
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A4
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Balance
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6.50
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0
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6.50
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2.50
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0
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2.50
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A5
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First €127
Balance
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0.00
4.00
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0
0
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0
4.00
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0
0
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0
0
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0
0
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Use the following subclasses for Community Employment participants.
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Up to €352
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A8
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ALL
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0
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0.50
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0.50
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0
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0.50
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0.50
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More than €352
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A9
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First €127
Balance
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0
4.00
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0.50
0.50
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0.50
4.50
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0
0
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0.50
0.50
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0.50
0.50
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Class J normally relates to people with reckonable earnings of less than €38 per week (from all employments). However, the following employees are insurable at Class J, regardless of earnings: employees aged 66 or over and people in subsidiary employment.
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Up to €500
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J0
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ALL
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0
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0.50
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0.50
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0
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0.50
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0.50
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More than €500
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J1
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First €1,925
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2.00
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0.50
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2.50
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2.00
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0.50
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2.50
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J1
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Balance
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2.50
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0.50
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3.00
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2.50
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0.50
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3.00
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J2
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ALL
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0
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0.50
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0.50
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0
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0.50
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0.50
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FÁS Allowance
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J9
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ALL
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0
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0.50
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0.50
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Training in FÁS training centres.
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Occupational Pensions
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More than €500
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K1
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First €1,925
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2.00
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0
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2.00
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2.00
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0
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2.00
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K1
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Balance
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2.50
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0
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2.50
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2.50
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0
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2.50
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ALL
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M
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ALL
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0
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0
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0
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0
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0
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0
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CLASS M: This class should be used where there is a NIL liability, that is employees under 16 years of age, people within Class K with a NIL liability, such as persons aged 70 or over, medical card holders, widows or widowers, etc.
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Public Sector Employments
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Up to €352
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B0
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ALL
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0
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2.01
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2.01
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0
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2.01
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2.01
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€352.01 - €500
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BX
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First €26
Balance
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0
0.90
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2.01
2.01
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2.01
2.91
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0
0
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2.01
2.01
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2.01
2.01
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More than €500
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B1
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First €26
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2.00
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2.01
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4.01
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2.00
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2.01
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4.01
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B1
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€26.01 to €1,925
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2.90
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2.01
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4.91
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2.00
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2.01
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4.01
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B1
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Balance
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3.40
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2.01
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5.41
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2.50
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2.01
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4.51
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B2
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First €26
Balance
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0
0.90
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2.01
2.01
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2.01
2.91
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0
0
|
2.01
2.01
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2.01
2.01
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|
|
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Up to €352
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C0
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ALL
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0
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1.85
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1.85
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0
|
1.85
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1.85
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€352.01 - €500
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CX
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First €26
Balance
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0
0.90
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1.85
1.85
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1.85
2.75
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0
0
|
1.85
1.85
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1.85
1.85
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More than €500
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C1
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First €26
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2.00
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1.85
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3.85
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2.00
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1.85
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3.85
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C1
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€26.01 to €1,925
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2.90
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1.85
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4.75
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2.00
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1.85
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3.85
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C1
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Balance
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3.40
|
1.85
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5.25
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2.50
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1.85
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4.35
|
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C2
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First €26
Balance
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0
0.90
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1.85
1.85
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1.85
2.75
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0
0
|
1.85
1.85
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1.85
1.85
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|
|
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Up to €352
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D0
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ALL
|
0
|
2.35
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2.35
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0
|
2.35
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2.35
|
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€352.01 - €500
|
DX
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First €26
Balance
|
0
0.90
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2.35
2.35
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2.35
3.25
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0
0
|
2.35
2.35
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2.35
2.35
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More than €500
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D1
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First €26
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2.00
|
2.35
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4.35
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2.00
|
2.35
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4.35
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|
D1
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€26.01 to €1,925
|
2.90
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2.35
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5.25
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2.00
|
2.35
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4.35
|
|
D1
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Balance
|
3.40
|
2.35
|
5.75
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2.50
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2.35
|
4.85
|
|
D2
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First €26
Balance
|
0
0.90
|
2.35
2.35
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2.35
3.25
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0
0
|
2.35
2.35
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2.35
2.35
|
|
|
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Up to €352
|
H0
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ALL
|
0
|
10.05
|
10.05
|
0
|
10.05
|
10.05
|
|
€352.01 - €500
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HX
|
First €127
Balance
|
0
3.90
|
10.05
10.05
|
10.05
13.95
|
0
0
|
10.05
10.05
|
10.05
10.05
|
|
More than €500
|
H1
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First €127
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2.00
|
10.05
|
12.05
|
2.00
|
10.05
|
12.05
|
|
H1
|
€127.01 to €1,925
|
5.90
|
10.05
|
15.95
|
2.00
|
10.05
|
12.05
|
|
H1
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Balance
|
6.40
|
10.05
|
16.45
|
2.50
|
10.05
|
12.55
|
|
H2
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First €127
Balance
|
0
3.90
|
10.05
10.05
|
10.05
13.95
|
0
0
|
10.05
10.05
|
10.05
10.05
|
|
|
|
Self-Employed (On PAYE System Only)
|
|
Up to €500
|
S0
|
ALL
|
3.00
|
0
|
3.00
|
3.00
|
0
|
3.00
|
|
More than €500
|
S1
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All up to - €1,925
|
5.00
|
0
|
5.00
|
5.00
|
0
|
5.00
|
|
S1
|
Balance
|
5.50
|
0
|
5.50
|
5.50
|
0
|
5.50
|
|
S2
|
ALL
|
3.00
|
0
|
3.00
|
3.00
|
0
|
3.00
|
- The annual earnings ceiling for PRSI has increased from €48,800 to €50,700 for employees in classes A, B, C, D and H, effective from 1 January 2008.
- There is no change to the additional 0.5% Health Contribution has been introduced on earnings exceeding €1,925 per week (equivalent to €3,850 per fortnight and to €8,342 per month).
- Class A employees earning between €38 and €352 inclusive per week should be recorded under Subclass A0.
- Class A employees earning between €352.01 and €356 per week should be recorded under Subclass AX.
- Class A employees earning between €356.01 and €500 per week should be recorded under Subclass AL.
- Community Employment participants earning €352 or less per week should be recorded under Subclass A8. Subclass A9 applies when earnings are more than €352 per week.
- Medical card holders and people who get a Widow’s or Widower’s Pension, a One - Parent Family Payment or Deserted Wife’s Benefit/Allowance do not have to pay any Health Contribution (2% or 2.5%) in any week where the reckonable earnings are more than €500. Where earnings are more than €500, record under Subclass 2 that is, A2, B2, C2, D2, H2, J2, S2 or Class M (for people within Class K), as appropriate.
- Everyone aged 70 or over qualifies for a medical card. They do not pay any Health Contribution (2% or 2.5%), regardless of whether or not they have a medical card.
- The Class J contribution normally relates to people with reckonable earnings of less than €38 per week (from all jobs). However, a small number of employees are insurable at Class J, regardless of earnings - for example, employees over age 66 and people in subsidiary employment.
- For employees taken on under the Employer’s PRSI Exemption Scheme, Subclass A6 is applied to employees earning €352 or less per week - normally insurable at Subclass A0. Subclass A7 is for those earning between €352.01 and €500 inclusive per week - normally insurable at Subclass AX or AL. In any week where earnings exceed €500, Subclass A4 applies to exempted employees who would normally be insurable at Subclass A1. Subclass A5 applies to those who would normally be insurable at Subclass A2 (i.e. medical card holders, and people getting a Widow’s or Widower’s Pension, a One Parent Family Payment or Deserted Wife’s Benefit/ Allowance).
- You can download information booklets from our website at www.welfare.ie/publications/index.aspx
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Other useful booklets:
|
|
Employers Guide
|
SW 3
|
|
PRSI for Non-PAYE Employees
|
SW 63
|
|
Employer’s PRSI Exemption Scheme
|
SW 73
|
|
A guide to PRSI for self-employed
|
SW 74
|
|
Family Employments and PRSI
|
SW 102
|
|
Worksharing
|
SW 105
|
|
When Completing a P35, P60 or P45,
Do Not Include Any Class or Subclass Of PRSI That Did Not Apply During The Year.
|
This leaflet is intended as a guide only and does not purport to be a legal interpretation.