Self-Employed V Employee
PRSI : Self-Employed v Employee
So what are the differences between the Class A and Class S PRSI?
| What is PRSI? |
| PRSI (pay related social insurance) is paid by employers, employees, individuals with self–employment income of €5,000 or more and certain other individuals, such as those in receipt of occupation pensions. The amount paid is used to fund social insurance (welfare) payments. |
| There are many classes of PRSI with various rates and entitlement to benefits. The current classes and rates of PRSI are on www.welfare.ie |
| Here we will discuss mainly the two common classes of PRSI: |
|
PRSI Rates
Class A: Employment Income
| Weekly earnings | Employee PRSI | Employer PRSI |
| €38 to €352 inclusive | NIL | 8.5% |
| €352.01 to €356 inclusive | 4.00% | 8.5% |
| €356.01 and over | 4.00% | 10.75% |
Class S: Self Employment Income of €5,000 or more
| Yearly earnings €5,000 or more | Employee PRSI | Employer PRSI |
| All income | 4% | NIL |
There is a minimum PRSI payment per year of €500.
Entitlements
When it comes to social welfare entitlements there is a vast difference between class A and class S as follows:
Social welfare benefits and pensions under Class A PRSI
• State Pension (Transition) – formerly Retirement Pension
• State Pension (Contributory) – formerly Old Age (Contributory) Pension
• Widow’s/Widower’s (Contributory) Pension
• Guardian’s Payment (Contributory)
• Invalidity Pension
• Occupational Injuries Benefits
• Treatment Benefit (Dental or Optical)
• Jobseeker’s Benefit
• Illness Benefit
• Carer’s Benefit
• Maternity Benefit
• Adoptive Benefit
• Health and Safety Benefit
• Bereavement Grant
Social welfare benefits and pensions under Class S PRSI
• State Pension (Contributory) – formerly Old Age (Contributory) Pension
• Guardian’s Payment (Contributory)
• Widow’s or Widower’s (Contributory) Pension
• Maternity Benefit
• Adoptive Benefit
• Bereavement Grant
A full description of each benefit and its qualifying criteria can be found on www.welfare.ie
Under either class, you may be entitled to Job Seekers Allowance provided you meet the conditions.
