Employee PRSI is not charged where weekly earnings are €352 or less. Where weekly earnings exceed €352, employees become liable for PRSI which is charged at 4% on all earnings. While the effect of paying PRSI on all earnings once the €352 employee PRSI threshold is exceeded, is an issue, the yield from those paying PRSI contributes to keeping workers on lower earnings (below the €352 threshold) outside of the PRSI net.
Family Income Supplement (FIS) is available for lower paid workers with families, whose income falls below the relevant FIS thresholds. The level of FIS entitlement is based on net income after all relevant deductions, including the deduction of PRSI. The payment effectively preserves the incentive to take up or remain in employment in circumstances where the employee might only be marginally better off than if s/he were claiming other social welfare payments.