Class A (Normal rate
at which contributions are made)
Employee's
Income chargable as below:
Total
Employers Rate
Tax Year 2006
Income up to €46,600
to PRSI @ 4% Plus a Health Contribution
Over €46,600
to a Health Contribution of 2%
6%
2%
10.75%
10.75%
Tax
Year 2005
Income up to €44,180
to PRSI @ 4% Plus a Health Contribution
Over €44,180
to a Health Contribution of 2%
6%
2%
10.75%
10.75%
Employees are exempt from PRSI
on the first €127 per week or €26
per week for employees on a modified PRSI
rate. Employees earning €300 or less
per week are exempt from PRSI and Health Contribution.
However, where earnings exceed €300 per
week, the employee’s PRSI Free Allowance
remains at €127 per week or €26
per week for employees on a modified PRSI
rate. Employees earning €400 or less
per week in 2005 and €440 or less per
week in 2006 are exempt from the Health Contribution
of 2%.
Non-Cash Benefits: From
January 2004 onwards, PRSI will apply to non-cash
benefits in the same way as income tax applies.
Prior to January 2004, any non-cash benefits
that were provided were not liable to PRSI.
However, following the changes, employers
will have to pay employer’s PRSI (currently
10.75%) on non-cash benefits, regardless of
the amount of employee earnings. Furthermore,
where the employee’s earnings are below
the PRSI threshold, now set at €46,600,
employee PRSI charges will also apply. The
2% Health Levy will also now apply to the
non-cash benefits.
Note: Recipients of a Social
Welfare Widow's or Widower's Pension, Deserted
Wife's, Benefit/Allowance or One-Parent Family
Payment are exempt from paying the 2% Health
Contribution. All Medical Card holders
(including people age 70 or over, from
1 July 2001) are also exempt from this contribution.
PRSI & Health
Contributions - Self-Employed
Class
S (Self Employed)
Total
Tax Year 2006
3% PRSI and 2% Health
Contribution on all income
5%
Tax
Year 2005
3% PRSI and 2%
Health Contribution on all
income
5%
Self employed persons are exempt
from Health Contribution of 2% where the annual
income is less than €20,800 or less in
2005 and €22,880 or less in 2006. The
minimum annual PRSI contribution is €253.
