Effect of abolition of PRSI exemption

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burmo

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To confirm, the weekly exemption is gone so for a standard PAYE employee that is 127*0.04 = 5.08 euro per week?
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From the Dept of Social Welfare Factsheet

PRSI Changes

The Employee’s PRSI-Free Allowance of €127 per week (for those paying PRSI Class A, E and H) and €26 per week (for those paying PRSI Class B, C and D) will be abolished. (January 2013)

Employees who earn €352 or less per week continue to have no liability to make a PRSI contribution and are not affected by the abolition of the weekly PRSI-Free Allowance.
Click to expand...

The Minister said that those who are on the minimum wage would not be affected.

So 40 x €8 per hour = €320 - continue to be exempt.

The worst affected is someone who is earning just over €18,000 per annum as they will pay the extra €265 per year which is a big cut.
 
Note that the exemption from PRSI if you earn less than 352 pw has not been changed.


It's the PRSI-free allowance of 127 pw that is being abolished.
 
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