PRSI Changes in Budget 2011

PRSI Changes in 2011 Budget

The employee PRSI ceiling of €75,036 has been  abolished.

Class S  – Self Employed PRSI is to be increased from 3% to 4%.

The modified PRSI rate for civil servants increases  from 0% to  4% on incomes in excess of €75,036.

A 4% PRSI charge will apply to certain Civil Service Office Holders. (Previously Zero)

PRSI and Public Service Pension-related Deductions

From 1 January 2011, the pension-related deduction which is charged to earnings in the public service will be subject to employee PRSI (and the Universal Social Charge)

Employee PRSI on pension contributions

From 1 January 2011, employee contributions to occupational pension schemes and other pension arrangements will be subject to employee PRSI and the Universal Social Charge.

Employer PRSI on pension contributions

The current employer PRSI exemption for employee contributions to occupational pension schemes and other pension arrangements will be reduced by 50% from 1 January 2011.

Other PRSI related changes

Introduction of a charge to PRSI on Approved Profit Sharing Schemes.

Introduction of a charge to PRSI on Approved Save-As-You-Earn Schemes.

Introduction of a charge to PRSI on Unapproved Share Options.

Introduction of a charge to PRSI on Share Awards.