PRSI & USC

This section provides up-to-date PRSI (Pay related social insurance) rates that apply to income from employment and self-employment. It also provides the new USC (Universal Social Charge) rates that replaced the income and health levies with effect from 1 January 2011.

 

PRSI

PRSI rates (1 January 2011)

Earnings

Employer

Employee

Class A1 - most employed persons:

Less than €356 per week

8.5% (a)

4% (b)

€356 per week or more

10.75%

4%

Class S1 - proprietary and non executive directors, not insurable under Class A

Nil

4%

 

 

Self-employed persons

Class S

4%

 

(a) The “Jobs Initiative” (10 May 2011) announced the reduction of this rate to 4.25%. This is to be effective from 1 July 2011.

(b) For employees the first €127 per week is exempt from PRSI contributions.

Key changes effective from 1 January 2011:

  • Employee PRSI ceiling abolished
  • PRSI reliefs for employee pension contributions have been abolished or reduced
  • All share awards are now liable to the Universal Social Charge (USC) and shares awarded on or after 1 January 2011 are also liable to PRSI. The “Jobs Initiative” (10 May 2011) announced the abolishment of the employer PRSI element with effect from 1 January 2011.

 

Universal Social Charge (USC)

The USC was introduced, with effect from 1 January 2011, to replace the health contribution and income levy. The USC is payable on gross income after relief for certain trading losses and capital allowances, but before relief for pension contributions.

Income

Rate (under 70)

Rate
(age 70 or over)

Less than €4,004

0%

0%

First €10,036

2%

2%

€10,037 to €16,106

4%

4%

€16,107 to €100,000

7%

4%

Over €100,000
(self-assessed income only)

10%

7%

 

Individuals in possession of a full medical card will only pay the USC at a maximum rate of 4%, irrespective of their level of income (7% for self-assessed income).