Written answers
Tuesday, 18 November 2025
Department of Employment Affairs and Social Protection
Social Welfare Code
Eoghan Kenny (Cork North-Central, Labour)
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721. To ask the Minister for Employment Affairs and Social Protection his views on whether a revision of categories of PRSI contributions in respect of those who pay class K contributions is necessary, given the propensity for no material benefit to arise when a class K employee ceases employment before the statutory retirement age; and if he will make a statement on the matter. [63412/25]
Dara Calleary (Mayo, Fianna Fail)
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The PRSI rate applicable for social insurance contributions paid at class K is 4.2%. Contributions at this class do not give rise to a right to any benefits available under the Social Insurance Fund.
There are two subclasses of class K. Subclass K1 applies to specific public office holders, such as the President, the Attorney General, the judiciary and members of the Houses of the Oireachtas, with an income of over €5,200 a year. Prior to 2011, these public office holders were not liable for social insurance contributions as their terms of employment protected them against contingencies such as illness, breaks in employment and old age. However, the PRSI class K charge on these public office holders was brought in Budget 2011 as a solidarity measure to contribute to social insurance at a time when extensive curtailment of social insurance entitlements to private sector employees was introduced.
The other subclass, K9, applies to the additional income of three categories of contributors.
- Pre-1995 civil and public servants who pay PRSI at a lower/modified rate (referred to as modified rate contributors) who have either or both self-employed earned and unearned income.
- Employed contributors who have unearned self-employed income only.
Self-employed earned income may be, for example, from a profession or trade. Self-employed unearned income may be, for example, rental or investment income. The Class K charges on the specified income of these categories of contributors were introduced in 2013 and 2014 to broaden the social insurance base without providing additional entitlement to social insurance benefits.
It should be noted that class K contributors may establish entitlement to social insurance benefits based on income(s) other than what is applicable under this class. For example, employees pay class A PRSI on their employment income which entitles them to all of the social insurance benefits available.
I am satisfied with the current PRSI categorisation of people whose income is liable to the class K charge. Such contributors, very likely, have access to social insurance benefits through PRSI contributions made on their other incomes or in the case of public office holders, their employment terms protect them against contingencies such as illness, breaks in employment and old age.
I trust this clarifies the matter for the Deputy.
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