PRSI calculation

W

Warren

Registered User
Messages
84
Hi guys,

I wanted to validate my PRSI payments and have been trying to work it out manually to see if it matches my pay slip.

Im in Class A and earn above 46600 p.a.

So if my gross pay was 4000 per month by my calculations

my PRSI per month is 133.32
3333 @ 4%
The 3333 being calculated as
monthly PRSI cut off point -> 3883.33
less PRSI exemption per month -> 550.33


From what I can figure I then pay the 2% health levy on the total of 4000 as its normal to pay 2% on the PRSI exemption amount i.e the 550.33, on the amount between 550.33 and 3883.33 and also any amount over 3888.33
So my health levy would be 4000 @ 2% -> 80

So total PRSI due is 213.32.

Can anyone tell me if my calculations are correct?

Cheers,
Warren
 
At the start of the year your PRSI should be...

€551 @ 2% = €11.02
€4,000 - €551 = €3,349 @ 6% = €206.94
Total = €217.96

When you hit the PRSI contribution ceiling of €46,600 later in the year the amount will reduce, e.g.: to a minimum of:

€4,000 @ 2% = €80

There is no "monthly PRSI cut off point". The PRSI ceiling only kicks in on a cumulative basis if/when you hit it during the year.

might help because it seems to work out things on a monthly basis for the full year presumably mirroring what should appear on your palslips.
 
On €48000, the ceiling wont be breached until halfway through December.

It's almost like they worked out PRSI for weekly paid people and shoe-horned in the monthly stuff at the last minute. It's very messy.
 
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