The nature of the employment mainly determines the PRSI contribution class that applies to an employee.
Contribution Class A
This applies to people in industrial, commercial and service-type employment under a contract of service and civil and public servants recruited since 6 April 1995, whose combined earnings from all employments bring them into Class A.
The appropriate subclass within Class A is based on the earnings in each separate employment.
Contribution Class J
This applies to:
- Employees in industrial, commercial and service-type employment under a contract of service, whose combined weekly reckonable earnings from all employments are below the threshold for Class A.
- Employees over 66 years of age.
- Employees who are also full-time civil and public sector employees and paying PRSI Class B, C, D or H in their full time job.
Contribution Classes B, C and D
These apply to pensionable employees in the civil and public service, including civil servants, teachers, gardaí, the army and local authority employees who were recruited before 6 April 1995.
Contribution Class H
This applies to NCOs and enlisted personnel of the defence forces.
Contribution Class K
This applies to people under 70 years of age who are not insurably employed under the Social Welfare Acts. The following are examples:
- People getting a pension from a former occupation,
- People normally paying Class S who have reached 66 years of age,
- People receiving income from positions of certain office holders, e.g. Judiciary, State Solicitors,
- Prescribed relatives.
Contribution Class M
If the weekly income is below the threshold for Class K contribution Class M applies.
Contribution Class M is also used for people who:
- Are under 16 years of age;
- Are normally insurable at Class K who:
- hold a medical card or
- get a Social Welfare Widow’s/Widower’s Pension
- get a One-Parent Family Payment
- get Deserted Wife’s Benefit/Allowance
- are aged 70 years or over
- get a widow’s or widower’s pension under the social security legislation of another country covered by EC Regulations.
Contribution Class S
This applies to self-employed contributors who pay tax and PRSI under the self-assessment system (Schedule D).
Directors whose income is assessable under Schedule E tax may also be liable to pay Class S.
If you need assistance with Irish payroll then be aware that not all payroll bureaus in the UK have this knowledge and expertise – it is a specialised area. Payplus has experience and a proven track record in this specialised area. We will help you to navigate the Irish systems.
Contact Robin Mead for more information – 0800 018 0590 rmead@payplus.co.uk
