The several changes to the calculation of PRSI in Irish payroll for 2011 as follows:


There are some changes to rates for 2011.

The Minister announced an Employer Jobs Incentive Scheme for 2010, this scheme has been extended for 2011. Where an employer creates a new job and takes on a person who has been unemployed for at least six (6) months, the employer will be exempt from paying Employers PRSI in the respect of that person’s employment for a period of one (1) year from the date of commencement.


  • The contribution ceiling has been removed
  • For 2011 reckonable earnings for calculation of employee PRSI is NOT reduced by employee pension contributions. Reckonable earnings for calculation of employer PRSI is reduced only by 50% of the employee’s pension contributions.
  • The Health levy of 4% has been removed from PRSI, this means that in 2011 some sub-classes (For example A1 and AL) feature identical rates.
  • Employees earning €352 per week or less (€352), will be exempt from PRSI.
  • For employees earning in excess of €352 per week (€352) the first €127 per week will
    continue to be free of PRSI.
  • Class S for the self employed rate has been increased from 3% to 4%
  • Modified PRSI rates (certain public servants) increased to 4% on incomes in excess of €75,036
  • Introduction of a 4% PRSI charge for certain Office Holders

Please ensure that you read the PRSI CONTRIBUTION RATES 2011 notes provided by the PRSI
Information Section of the Dept. of Social, Community and Family Affairs.