The PRSI-free allowance for employees paying the ordinary rate of PRSI was first introduced in 1995. For that year, a weekly non-cumulative threshold of £50, €63.49, per week applied to employees covered under classes A, E and H and with weekly pay exceeding £178, €226.03. A corresponding allowance for individuals in classes B, C, D and S was £10, €12.69.
In 1997, the PRSI-free allowance for employees in classes A, E and H and with weekly reckonable earnings above £197, €250.15, was £80, €101.58, per week and £20, €25.39, per week for employees in classes B, C, D and S. In 2000, the PRSI-free allowance for employees in classes A, E and H and with weekly reckonable earnings above £226, €287, was £100, €127, per week and £20, €25.39, per week for employees in classes B, C, D and S. It is estimated that an upward change in the current €127 allowance threshold to €200 or €300 would reduce employee contributions to the social insurance fund by €186 million or €440 million, respectively.