Taxes in Europe Database v2
Social Welfare (Consolidation) Act 2005.
Social security contributions are paid into a single social insurance fund by employees, employers and the self-employed. The fund covers the cost of accrued benefit entitlements for employees and self-employed (with subvention by the Exchequer if required).
Certain income from employees above which isn't treated as income from employment is subject to self-employed PRSI contributions.
In 2014 unearned income became liable for PRSI. Unearned income from rents, investments, dividends and interest on deposits and savings will be liable to PRSI at 4% from 1 January 2014. People under 16 and over 66 remain exempt from PRSI and are not liable for the new charge.
In the case of employees - reckonable income from insurable employment including benefit in kind.
The cap/ceiling on employee PRSI contributions was abolished from 1st January 2011.
Weekly PRSI free allowance of €127 has been abolished from 1 January 2013.
Employees: Lower rates for low paid, relief on lump sum termination payments subject to certain limits, not payable by employees over 66, certain employments accepted e.g. employment in service of husband or wife, public servants recruited prior to 1995 pay lower rates in conjunction with reduced benefit entitlements.
Rate structure reflects a total rate and is not split into rates per benefit type. In general employees earning less than €352 per week pay no PRSI. Where weekly income exceeds €352 a rate of 4% applies (= Class 4).
Collector General in most cases. Certain special collections administered by Dept. of Social Protection.
For PRSI Class structure and rates please see the following link http://www.citizensinformation.ie/en/social_welfare/irish_social_welfare_system/social_insurance_prsi/social_insurance_classes.html
Tax Revenue above is the amount of actual social contributions which relates to employee social contributions (d6112). The reduction between 2010 and 2011 revenue reflects the abolition in 2011 of the Health Contribution which had been collected as part of the PRSI system prior to that.
There was a classification error in 2011, where money that should have been allocated to Income Tax/USC was allocated to social contributions. This lead to 2011 receipts for social contributions being overstated. In 2012, the social contributions were understated as the receipts were allocated back to Income Tax to make up for the classification error of 2011. This descibes the difference between 2011 and 2012 reciepts
Tax revenue for d6112 and d611 are shown below.