Contributions made to supplementary private pension arrangements are exempt from taxation (subject to certain restrictions) and, in certain circumstances, such contributions are also exempt from PRSI. There is no tax relief on PRSI contributions generally, however, and it is the case that social welfare pensions are liable to tax. The income tax exemption limits for senior citizens aged 65 and over are set at a level that recipients of social welfare pensions would not generally have to pay tax on their income from this source. The exemption limits for 2007 for individuals over the age of 65 are as follows
€19,000 for single/widowed persons and
€38,000 for a married couple.