Health Levy/Contribution

Charisteas

Hey guys, I have a couple of queries regarding the Health Levy that I have been paying as part of my p.r.s.i. contribution.

I have read several online sources stating that the Health Levy is payable if you earn more than 500.00 per week, and other sources stating that it's payable if your annual salary is over 26,000 per year.

First of all, which of these statement is accurate? Probably both, but let me explain my situation, if you don't mind.

My dilemma is that, my basic salary is around 490 gross per week, just below the 500 threshold, but for about 50% of weeks in the last 2 years, i have worked overtime, or received small bonuses for working bank holidays etc, which would push my weekly salary to over the 500 mark. Thus, pushing my annual salary to more than 26000 for these last 2 years.

So, my main question is, should I only have been paying this Health Levy on the certain weeks that i earned over 500? Or, is the most important figure the total gross pay per year, which for me would be around 26400, and should I be paying the full 4% every week, even in weeks when my salary was less than 500?

Seems a tad strange that I have to pay over 1000 per year, just for earning 400 per year over the threshold

But if it is calculated on a per week basis, then I think I can claim something back. Which brings me onto another query, what is the official PRSI website? I have found Revenue.ie, Welfare.ie, and citizensinformation.ie, but not sure which one is the best to contact to get the correct answer about this.

Many thanks in advance

barneystinson

To answer your main question, NO, you don't owe extra health levies because your total income exceeded the €26k threshold. Your liability to PRSI/Levies for each specific pay period is a standalone calculation, and the annual threshold is only used to determine whether or not you should get a rebate.

i.e. If you are paid weekly, then in any week where your reckonable pay is over €500, you will be liable to pay the health levy on your earnings FOR THAT WEEK.

If however your earnings FOR THE YEAR are below the threshold figure of €26k, then you can claim a refund of any health contributions paid, in any individual weeks where your pay exceeded the €500 mark.

From what you have said, you have earned marginally over this threshold amount, so you are neither entitled to a refund, nor do you have any further liability.