How does PRSI work in Ireland — what are Class A rates and what does it fund?

Pay Related Social Insurance (PRSI) is Ireland's social insurance contribution system. It funds benefits including the State Pension (Contributory), Jobseeker's Benefit, Illness Benefit, Maternity Benefit, and Invalidity Pension.

Class A is the most common PRSI class, applying to employees in the private sector and most public servants recruited after 1995. For 2024, employees pay PRSI at 4% on all earnings above €352 per week. Employers pay a higher PRSI contribution of 11.15% on employee earnings above €441 per week.

From October 2024, the employee PRSI rate increased from 4% to 4.1% as part of a phased increase. Self-employed individuals pay PRSI under Class S at 4% on all income. There is a minimum annual contribution of €500 for self-employed earners below the minimum income threshold.

PRSI contributions build up social insurance records, which determine entitlement to contributory benefits. Employees need at least 520 full-rate paid contributions to qualify for the State Pension (Contributory). Each full year of employment typically adds 52 contributions.