PRSI Explained
Your complete guide to Pay Related Social Insurance - what it is, how it works, and what benefits you're entitled to.
What is PRSI?
Pay Related Social Insurance (PRSI) is a social insurance contribution that funds various benefits and pensions in Ireland. Both employees and employers pay PRSI, which goes into the Social Insurance Fund managed by the Department of Social Protection.
Your PRSI contributions build up your entitlement to social welfare benefits such as:
- State Pension (Contributory)
- Jobseeker's Benefit
- Illness Benefit
- Maternity and Paternity Benefit
- Invalidity Pension
- Widow's/Widower's Pension
Important: Unlike income tax and USC, PRSI contributions actually earn you entitlements. The more contributions you make, the stronger your social welfare benefits when you need them.
PRSI Classes
The PRSI class you're in determines your contribution rate and the benefits you're entitled to. The class depends on the type of work you do:
Class A - Most Employees
This is the most common class covering private sector employees, public servants recruited after 1995, and most workers under the PAYE system.
Rate: 4% of gross earnings
Class S - Self-Employed
For self-employed people, certain company directors, and people with income from investments or rents.
Rate: 4% (minimum €500 per year)
Class B, C, D - Public Servants
For permanent public servants recruited before April 1995. These classes have limited benefit entitlements.
Rates vary by class
Class A PRSI Rates (2025)
For most employees (Class A), the rates are:
| Contributor | Rate |
|---|---|
| Employee | 4% |
| Employer | 11.05% |
Note: Your employer also pays PRSI on your behalf - at a much higher rate than you. This employer contribution isn't shown on your payslip but is an additional cost of employing you.
PRSI Credit and Exemptions
Weekly Earnings Threshold
If you earn €352 or less per week (approximately €18,304 per year), you don't pay any employee PRSI. However, you still get credited contributions.
PRSI Credit (Tapered Relief)
If you earn between €352.01 and €424 per week, you qualify for a PRSI credit that reduces your contribution. The credit is calculated as:
PRSI Credit = (€424 - Weekly Earnings) ÷ 6
This tapered relief ensures there's no sudden jump in PRSI when you earn just over the threshold.
Benefits You're Entitled To
Class A PRSI contributions entitle you to a wide range of social insurance benefits:
Employment Benefits
- • Jobseeker's Benefit
- • Illness Benefit
- • Injury Benefit
- • Occupational Injuries Benefits
Family Benefits
- • Maternity Benefit
- • Paternity Benefit
- • Parent's Benefit
- • Adoptive Benefit
Long-term Benefits
- • State Pension (Contributory)
- • Invalidity Pension
- • Widow's/Widower's Pension
- • Guardian's Payment
Other Benefits
- • Treatment Benefit (dental, optical)
- • Carer's Benefit
- • Health and Safety Benefit
PRSI Calculation Example
Let's calculate PRSI for an employee earning €50,000 per year:
That's €38.46 per week or approximately €166.67 per month deducted from your pay.
State Pension Requirements
To qualify for the full State Pension (Contributory), you generally need:
- At least 520 paid PRSI contributions (10 years of full contributions)
- PRSI contributions starting before age 56
- A yearly average of at least 48 contributions (for maximum pension)
The current maximum State Pension (Contributory) rate is €277.30 per week (2024). Your actual pension depends on your contribution record.
Checking Your PRSI Record
You can check your PRSI contribution record online through:
- MyWelfare.ie - View your contribution history and projected pension entitlements
- Revenue's myAccount - See your employment and PRSI records
It's worth checking your record periodically to ensure all your contributions have been properly recorded.
Calculate Your PRSI
See your complete tax breakdown including PRSI with our free calculator.
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