Ireland Fact-File Part 7:
Business Owner Welfare and Lifestyle

7.1 Ireland Business Social Security

The social security system

Incorporated business operations are generally required to register as employers and pay PAYE/PRSI on the emoluments of their directors, even if there are no other employees.

Employers pay PRSI for each employee at a rate of 10.75% (reduced to 8.5% if the employee's income is less than EUR356 per week).

A variable rate (depending on earnings) health contribution is payable (within the PRSI payment) by employers, employees, and the self-employed.

Updated in December 2010 In the austerity budget announced in December 2010, it emerged that employed and self-employed workers would both pay a 4% PRSI rate from 2011; previously, the self-employed paid 3% and employees 4%. In addition, the budget unveiled a new ‘universal social contribution’, in place from January 2011, which replaces the health levy and the income levy.

Under the universal system, contributions are necessary on various new sources of income, including rental income, investments and share options (unearned income).

The budget also removed the EUR75,036 threshold at which employees pay no further PRSI contributions, subjecting income in excess of that amount to PRSI at 4%; made employee pension contributions subject to PRSI and the Universal Social Charge; and reduced employer PRSI relief on pension contributions made by their employees by 50%.

Introductory Guides

Brief, clearly written summaries with links to relevant sections of the Fact-File. The Fact-File itself is linked in full below.

Ireland Artist Tax Guide

Ireland Contractor Tax Guide

Ireland Entrepreneur Tax Guide

Ireland Professional Tax Guide

Ireland Small Business Tax Guide

Ireland Sportsperson / Entertainer Tax Guide

Fact-File

Part 1: Business Formation for Individuals

Back to main Ireland page