prsi

PRSI, short for Pay Related Social Insurance, is a payroll-based system of social insurance contributions in Ireland. It is financed by contributions from employers, employees, and, in some cases, the self-employed. PRSI funds a range of social welfare benefits and access to contributory pensions, illness and maternity benefits, jobseeker’s benefits, disability and injury benefits, and other state supports.

Contributions are calculated according to a person’s earnings and their PRSI class. The most common arrangement for workers is Class A, with different classes applying to self-employed, part-time, or special cases. The rates and earnings thresholds that determine liability are set by the government and can change from year to year. Contributions are collected by employers through the payroll system and forwarded to the state, and PRSI is distinct from income tax and other charges such as the Universal Social Charge.

PRSI entitlements depend on the number of PRSI contributions paid and, in many cases, the length of time they have been paid. Some benefits require minimum contribution records; PRSI credits can apply in periods of unemployment, illness, or caring duties to preserve future entitlements.

The PRSI system is administered by the Department of Social Protection as part of Ireland’s social welfare framework. It has evolved since the mid-20th century to provide financial support to workers and their families during illness, unemployment, motherhood, disability, or retirement.