Get a Handle on Payroll – Understanding PRSI

Understanding PRSI

Share This Post

(4) Understanding PRSI


Pay Related Social Insurance (PRSI) is paid by employees, employers and the self-employed. These PRSI contributions are used to fund various Social Welfare benefits and pensions.


Each time you pay your employees, you must deduct the employee’s PRSI contribution from their gross pay. You must also pay an employer PRSI contribution.


The amount of PRSI due depends your employee’s income and PRSI Class. Most employees are in Class A while most self-employed people are in Class S. There are other PRSI classes for various types of public sector workers.


In a previous blog, we discussed tax credits and explained how various credits, reliefs and allowances can reduce your employee’s Income Tax liability. There is a tapering PRSI credit for Class A employees earning between €352.01 and €424 a week. The maximum weekly PRSI credit is €12.


Class S PRSI contributions are 4% of all self-employed income. The minimum annual contribution for Class S is €500.


Further information on PRSI contribution classes and rates is available on the Government website.


Need more information on PRSI or help with operating your payroll? Contact GroForth for details of our payroll services.


Subscribe To Our Newsletter

Get updates and learn from the best

More To Explore

How to manage payroll headaches

Payroll Headaches

Here are our payroll pain points—What are yours?   Every employee expects to be paid on time and many count on it. So, when things

Do You Want To Boost Your Business?

drop us a line and keep in touch

Thank you in advance for contacting me.

– Sarah 

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
GropForth Logo

Thank you

We will respond to your request
as quickly as possible.