All self-employed workers with annual income in excess of €5,000 are liable for PRSI at the class S rate of 4%, subject to the minimum payment of €500. This entitles them to access a range of long-term benefits such as State pension (contributory) and widow’s, widower’s or surviving civil partner’s pension (contributory) as well as maternity benefit, adoptive benefit and guardians payment (contributory).
Self-employed workers with insufficient means may access social welfare supports by establishing entitlement to assistance-based payments such as jobseeker’s allowance and disability allowance. Self-employed workers can apply for the means-tested jobseeker’s allowance if their business ceases or if they are on low income as a result of a downturn in demand for their services.
In instances where a self-employed worker qualifies for a means tested social welfare payment and has annual self-employed income in excess of €5,000, he/she continues to be liable for class S PRSI at 4% on their self-employed income, subject to a minimum payment of €500.