While in employment, workers pay PRSI contributions based on their earnings. These contributions will assist them in establishing entitlement to long-term benefits such as State pension (contributory) and short-term benefits such as jobseekers’ benefit. If they leave employment to pursue a full-time course of education and will no longer be paying PRSI, they can protect their social insurance record by paying voluntary contributions or they may, subject to certain conditions, qualify for credited contributions (credits). Voluntary contributions assist in maintaining entitlement to long-term benefits such as the State pension contributory. To become a voluntary contributor a person must:
- have paid at least 520 weeks PRSI in either employment or self-employment;
- apply within 12 months of the end of the tax year during which he/she last paid compulsory insurance or were last awarded a credited contribution;
- agree to pay voluntary contributions from the start of the contribution week that follows the week in which he/she leaves compulsory insurance.
A former worker who becomes a full time student may qualify for credits if they have paid at least 1 PRSI contribution while working and begin their course of study before the age of 23. Student credits are awarded when the insured person returns to work.
Credits protect social insurance entitlements by bridging gaps in an employee’s social insurance record, where they are not in a position to pay PRSI, such as during periods spent in full-time education. In combination with paid PRSI contributions, credits assist employees in qualifying for short-term schemes and enhance the level of benefit for long-term schemes.
Further information can be found on www.welfare.ie or www.citizensinformation.ie.
