Employer Tip February 2013: Budget changes to PRSI – what it means to employees
Budget changes to PRSI – Are you aware how the changes affect your employees?
Employees who are currently liable for PRSI will no longer have the weekly €127 PRSI allowance. This means that all employees who currently pay PRSI will pay just over €5.00 extra per week in PRSI or €264.00 per annum.
Self-Employed people will need to pay a minimum PRSI contribution of €500 per annum, increased from €253.
Other Budget Changes mean that new measures have been introduced to ensure that all sources of personal income are now subject to PRSI. In 2013 those who pay a modified PRSI Rate (Class B, C, D) arising from income generated as a result of a trade or profession and any unearned income will be subject to PRSI from 1st January 2013. In 2014 those who currently pay PRSI on their salaries will also be subject to PRSI on any unearned income (rental income, dividends, investment and interest on deposits/savings). Exact details of how this will be calculated and paid have yet to be announced.
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