PRSI CLASS K1 - No entitlements - why pay it?

O

oldtimer

Registered User
Messages
849
I notice in my pension every fortnight a deduction for PRSI - class K1. I am told it entitles me to nothing. Why am I paying it so? Can I refuse to pay it?
 
PRSI class K actually involves 0% PRSI and 2% health levy where weekly earnings are in excess of €440. The lack of any PRSI contributions explains the lack of PRSI benefits cover. As far as I know you cannot opt not to pay this.
 
Strictly speaking the "2% Health Levy" is just another tax on income and not a social insurance payment.
 
Thanks Clubman and jpd. Yes that is what I was told - just another form of tax. Also it looks compulsory so i cannot opt out. Maybe the cut off amount will be raised in the budget.
 
eazos posted under taxation forum where you can get a refund of health contributions if your 2005 income was under 20,800. (which is around 440 per week)
 
You must log in or register to reply here.
Back
Top