How is employee PRSI calculated under Section 13 of the Social Welfare Consolidation Act 2005?

Employees earning €352 per week or less pay no PRSI. Those earning between €352.01 and €424 pay 4% but receive a tapered credit starting at €12, reduced by one-sixth of earnings above €352.01. Employees earning over €424 per week pay a flat 4% on all reckonable earnings with no credit applied.

What employer PRSI rates apply under Section 13?

Employers pay PRSI at 7.8% on reckonable earnings where the employee earns €441 per week or less. Where weekly earnings exceed €441, the employer rate rises to 10.05%. Reckonable earnings may be reduced by allowable superannuation contributions and share-based remuneration when calculating the employer's liability.

Can an employer recover PRSI contributions from the employee?

The employer must initially pay both contributions and may recover the employee's share through payroll deductions. However, the employer is explicitly prohibited from recovering the employer's own contribution from the employee under any circumstances. Employee PRSI deducted is treated as money held in trust by the employer.

How does Section 13 treat share option gains for PRSI purposes?

Where an individual exercises a share option after leaving the employment of the company that granted it, the employer is not required to pay the contribution. Instead, the individual is deemed an employed contributor and must pay the employee's PRSI contribution directly on the gain realised from exercising the option.

Social Welfare Consolidation Act 2005 section 13

Employment contributions

Section 13 sets out the rules for calculating and paying PRSI employment contributions by both employees and their employers, including the applicable rates, earnings thresholds, and responsibilities for collection.

Employees earning €352 per week or less pay no employee PRSI; those earning between €352.01 and €424 pay 4% on reckonable earnings but benefit from a tapered credit; those earning over €424 pay a flat 4% on all reckonable earnings.
Employers pay PRSI at 7.8% on reckonable earnings up to €441 per week, or 10.05% where earnings exceed €441, with certain deductions allowed for superannuation contributions and share-based remuneration.
The employer must pay both the employer's and employee's contributions in the first instance, recovering the employee's share by payroll deduction — but may not recover the employer's share from the employee under any circumstances.
Special rules apply to gains from share option schemes exercised after leaving employment (the individual pays their own PRSI), to certain community employment-type schemes (reduced 0.5% employer rate), and to agreements with Revenue for tax on qualifying emoluments (combined employer rate of 14.05% with no employee recovery and no benefit entitlement arising).

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