Budget 2008 - PRSI

The following changes are effective from 1 January 2008:

Employee’s Annual Earnings Ceiling

The employee’s annual earnings ceiling (above which they pay no social insurance contributions) is being increased from €48,800 to €50,700.

Employee income thresholds

The threshold for employee PRSI is being increased from €339 a week to €352 a week.

The threshold for payment of the 2% Health Contribution is being increased from €480 a week to €500 a week.

The additional 0.5% Health Contribution on earnings exceeding €1,925 per week (equivalent to €3,850 per fortnight and to €8,342 per month) is unchanged.

The annual earnings threshold for the Health Contribution is being increased from €24,960 to €26,000.

Employee's PRSI-Free Allowance

The PRSI-Free Allowance for employees in Classes A and H with weekly earnings of more than €352 remains at €127 per week and at €26 per week for all employees in Classes B, C and D.