AITI Chartered Tax Adviser
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What is the PRSI rate for self-employed?

There is one PRSI classes for self-employed contributors:
Class S: This applies if you:

(a) are self-employed, i.e., in business on your own account, for example a farmer, or a controlling company director,
(b) have income from investments, rent or maintenance.

There are three sub-classes within class S:

(i) Class S0: earnings of up to €500 per week are liable to PRSI at 4%.

(ii) Class S1: earnings in excess of €500 per week are liable to PRSI at 4%.

(iii) Class S2 (medical card holders, widows and widowers, lone parents): earnings in excess of €500 per week are liable to PRSI at 4%.
Class S benefits: widows or widowers contributory pension, orphans contributory allowance, retirement pension, old age contributory pension, maternity benefit, adoptive benefit.
Class S includes self-employed proprietary directors.

You must pay the minimum self-employed contribution of €500 unless Revenue advise you that a return is not required.
You are not treated as a self-employed contributor if you are an excepted contributor, i.e.:

(a) A prescribed relative (husband, wife, mother, father, grandmother, grandfather, stepmother, stepfather, son, daughter, grandson, granddaughter, stepson, stepdaughter, brother, sister, half-brother, half-sister) of a contributor who participates in that contributors business and performs the same tasks.
(b) You are in receipt of unemployment assistance or pre-retirement allowance.
(c) You have less than €3,174 in aggregate of reckonable earnings (after pension contributions), reckonable emoluments, and reckonable income (after capital allowances).
(d) You are an employed contributor, or in receipt of a pension, and your income for the contribution year does not include reckonable emoluments or trading or professional income.
(e) Persons in public service employment who pay modified PRSI (Classes B, C, D), apart from NCOs and listed personnel in the Defence Forces (Class H).
(f) A person who is neither resident nor ordinarily resident in the Republic of Ireland for income tax purposes who has reckonable income other than trading or professional income (for example, a non-resident in receipt of Irish rental income).