PRSI & Budget 2016

laurah591

Hi,

I'm trying to create an income calculator based on yesterdays budget, however, I am having a problem understanding the changes to PRSI - A new tapered PRSI Credit is being introduced for employees insured at Class A whose earnings are between €352.01 and €424 in a week. - In practice, can someone explain to me how this will work?

Thanks for you assistance

allthedoyles

In plain English that means the PSRI will not rise as straight from zero to €14.08 a week. The changes only affect people on incomes from €352 a week to €424 a week (18304 to 22048 annually)

The maximum PRSI relief is €12 a week – and that is applied on wages of €352 a week. So instead of paying €14.08 a week PRSI the person will pay €2.08 a week.
The PRSI relief is gradually reduced as wages rise to €424 a week. For every €6 rise in weekly wage the relief is reduced by €1 a week.

I hope the above makes sense .............the figures are taken from moneyireland website .

namenotavailablE

There are many calculators available- see my Excel one linked in my profile on my signature below this post.

laurah591

Hi Allthedoyles,

Thats spot on - cheers for your assistance

allthedoyles

Its an unusual one to see a PRSI credit and could be complicated for wages departments who pay wages fortnightly .

For instance if an employee earns €350 one week , and earns €400 following week , they normally would pay just 4 % on everything . But now they pay no PRSI on the first week and get the credit for 2nd week.

Or to look at it another way the employees average earnings for the fortnight will bring him within the PRSI credit window .

Ogham

allthedoyles wrote: »

I hope the above makes sense .............the figures are taken from moneyireland website .

http://www.moneyguideireland.com/budget-2016-and-prsi-changes.html