PRSI INFORMATION (Pay Related Social Insurance)

It falls within the remit of the Payroll Office to deduct and remit PRSI (Pay Related Social Insurance) in respect of employees of UCD.

The Dept. of Social & Family Affairs is responsible for all aspects of Social Welfare administration in Ireland.  Full details are available from www.welfare.ie.

What is PRSI?

PRSI (Pay Related Social Insurance) usually in the form of an employee and employer contribution, is calculated on a percentage basis of reckonable earnings (gross pay less pre-tax deductions plus notional pay).

What is generally referred to as PRSI is actually made up of two components, the Social Insurance element and the Health Contribution element.

The Social Insurance element funds Social Welfare payments and is payable by both the employee and the employer.  The percentage payable is determined by the relevant PRSI Class applied to each individual record.  Please refer to Rates of Contribution.  A ceiling of €75,036 (2010) cumulative reckonable earnings is currently applicable to employee PRSI contributions.

The Health Contribution Levy is payable to the Dept. of Health & Children and goes towards the funding of the Health Service. The Health Contribution Levy is a flat 4% and is payable once weekly earnings exceed 500 per week or monthly equivalent.  There is no ceiling on the Health Contribution Levy.

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PPSN (Personal Public Service Number)

The Dept. of Social & Family Affairs are responsible for the administration of PPS Numbers.

A PPSN is a number unique to each individual which identifies that person to all state agencies and other authorised organisations.

You must provide UCD with your PPSN in order to receive payment.

Please click here to be referred to Dept. of Social & Family Affairs official website where you can find detailed information on the PPSN.

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Classes of Contribution

PRSI is collected under different Classes, each of which is further divided into sub-classes, which are determined by the level of reckonable earnings payable in a payperiod.

The Class of PRSI applied to an individual record is determined by the date of joining UCD and whether the income payable from UCD is a salary/wages payment or a payment resulting from the Occupational Pension Fund.

Possible classes applied are A, D, K, J, and M.

In the context of UCD PRSI is applied as follows:

Class Applied to
A

Employees who have reckonable earnings of €38 or more per week (or monthly equivalent) and who were recruited to UCD on or after 6th April 1995

D applies to permanent and pensionable employees recruited before 6th April 1995.
K applies to those in receipt of income derived from UCD Occupational Pension Scheme and under the age of 70 years.
J applies where reckonable earnings are less than €38 per week (or monthly equivalent), employees aged 66 year or over and people to whom UCD is a subsidiary employment.
M applies to people within class K with a nil liability i.e. those over the age of 70 years.

For details of Rates of Contribution and more detailed information on Classes of PRSI please see Social Welfare Leaflet SW14.

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PRSI Ceiling

An annual ceiling of €75,036 (2010) cumulative reckonable earnings is currently applied to PRSI Social Insurance element.  Once cumulative earnings within the tax year reach €75,036, only the Health Contribution Levy element of 4% is payable until the end of the tax year.

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Low/Fluctuating Earnings

Each individual’s PRSI Class is determined on Payroll so that it will automatically default to the correct sub-class within each class on the basis of reckonable earnings within the payperiod.

In situations where earnings fluctuate and the total annual reckonable pay does not exceed €18,304, the employee may claim a refund of any 2% Health Contribution Levy paid during the course of the year.

Applications must be addressed to:

                Dept. of Social & Family Affairs,

                PRSI Refunds,

                Oisín House,

                Pearse St.,

                Dublin 2.

Tel:  + 353 1 673 2566

Application form for a Refund of PRSI Contributions or Health Levy

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What is Subsidiary Employment?

Employment which is regarded as being of a subsidiary nature is insurable under Class J.  Subsidiary employment status is applied to individuals who’s employment in UCD is not their main source of employment and they are insurable under Class B,C,D or H in their principle employment.

Please note that the term subsidiary employment does NOT simply refer to a part-time or occasional employment.  The above satisfying conditions must be met. 

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DSFA Offices

Please click here for list of Dept. of Social & Family Affairs Offices

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