Where an employee’s weekly earnings exceed €352 per week, he or she is liable to pay PRSI at 4% on all income over the weekly PRSI Free Allowance of €127. For civil and public sector employees paying modified rate contributions (Classes B, C and D), and who pay PRSI at 0.9%, the weekly PRSI-free allowance is €26. With effect from 1 January 2013, these weekly PRSI free Allowances are being abolished.
This estimated number of workers affected by this measure is as follows:
-1,247,560 private sector employments, and
-73,835 civil and public sector employments.
This measure will have no impact on an estimated 574,830 employments with weekly earnings not exceeding €352 as no PRSI is payable.