Pay Related Social Insurance (PRSI) contributions and pension benefits

Your current class of PRSI is decided by the date of your entry into teaching. Those who began teaching prior to 6 April, 1995 pay PRSI at Class D. If they resigned a teaching position after April 1995 and had a break in PRSI contributions they move to Class A PRSI from that date on. Even a break of a day in contracted employment would lead to a move from Class D to Class A PRSI.

All teachers who entered teaching on or after 6 April, 1995 pay Class A PRSI.

All substitute work at any stage of a teacher’s career is subject to Class A PRSI deductions.

Teachers who are over the state retirement age (currently 66) pay PRSI at Class J.

Teachers can see their PRSI Class on their fortnightly payslip.

Teachers can also access their full PRSI record from their MyGovId account.

The current rates are as follows-

 

Class D contributions are at 0.9% up to €1,443 a week and 4% above €1,443 a week

In October 2024 this rate is set to be increased to 1%.

 

Class A contributions are at 4% after the first €352 of weekly income.

In October 2024 this rate is set to be increased to 4.1%.

The Class A benefits include:

• Adoptive Benefit
• Carer’s Benefit
• Guardian’s Payment Contributory
• Health and Safety Benefit
• Illness Benefit
• Invalidity Pension
• Jobseeker’s Benefit
• Maternity Benefit
• Occupational Injuries Benefits
• Parent’s Benefit
• Partial Capacity Benefit
• Paternity Benefit
• State Pension Contributory
• Treatment Benefit
• Widow’s, Widower’s or Surviving Civil Partner’s Contributory Pension.

Further information on PRSI and contribution rates is available here

The Class D benefits include:

• Carer’s Benefit
• Guardian’s Payment Contributory
• Occupational Injuries Benefits
• Parent’s Benefit
• Widow’s, Widower’s or Surviving Civil Partner’s Contributory Pension.

Further information on PRSI and contribution rates is available here.

If you pay Class A PRSI and availed of unpaid leave you can contact the Department of Social Protection to claim credited PRSI for this time.

This will be of benefit to you when claiming the State Pension Contributory which is moving to a total contributions approach.

• The maximum state pension is based on 2080 Class  A contributions (or 52 times 40 years). You receive a Class A contribution each week you work.
• If at the state retirement age, you have 1040 class A contributions you would receive 1040/2080 of the state pension, in this case 50%.

If unpaid maternity leave is taken, upon returning to service, an employee may apply for credited PRSI contributions for this time, using the SW11 (PDF) form.

If you avail of Parental Leave you can get a credit for each full week taken. To do this you will need a letter from your school confirming the duration, number of weeks and exact dates of Parental Leave taken, this can be sent to

Client Eligibility Services – Buncrana

Department of Social Protection, McCarter’s Road, Buncrana, Donegal, Co. Donegal, F93 CH79

Email : contributionstatement@welfare.ie

Phone number: 01 4715898   0818 690690

On retirement members with Class D PRSI contributions only, have no entitlement to a state pension benefit and will receive their pension in full through the Department of Education.

Members who have Class A contributions, or a mix of Class A and Class D may have an entitlement to the State Pension from the state pension age (currently 66) or to Job Seeker’s Benefit/Age 65 Benefit if they retire before the state pension age.

These members can interact with the Department of Social Protection when they retire to claim any benefits they are entitled to.

From 1st August 2024 members who retire with Class A PRSI before the state retirement age of 66 will have the option of claiming an Occupational Supplementary Pension (OSP) immediately from the Department of Education instead of any state benefit (e.g. Job Seeker’s Benefit) they may be eligible for. Subject to review, this OSP payment can continue until they have claimed their State Pension Contributory.

The Occupational Supplementary Pension is a payment that bridges the gap any overall pension entitlement until the member has claimed the State Pension Contributory.

Members who retire on Cost Neutral Early Retirement basis will not be entitled to an Occupational Supplementary Pension until they reach the normal retirement age for their pension scheme.

On retirement this member will have the option to claim any state benefits they may be entitled to based on their Class A PRSI contributions, or to claim an Occupational Supplementary Pension (OSP) from the Department of Education.

The value of the state benefit, e.g. Job Seeker’s benefit, may be at a higher rate than the members OSP.

If the member chooses to seek a benefit from the Department of Social Protection on retirement they should go to their local INTREO office, details of the locations can be found here gov.ie – Intreo centres and local branch offices (www.gov.ie).

This member should ask to be assessed for Job Seeker’s Benefit (not Job Seeker’s Allowance which is means tested), this is based on their number of PRSI Class A credits.  There may be no entitlement, or they may have an entitlement for up to 9 months which they need to claim.

Once the Job Seeker’s benefit has ceased, or if there is no Job Seeker’s Benefit entitlement, the member can then seek to claim any OSP they are entitled to from the Department of Education.

If the member is eligible, the Department of Education then pays the member the Occupational Supplementary Pension until the state pension contributory age (currently 66) which ensures that they receive their full pension entitlement.

The onus is on the retired teacher to inform the Department of Education when any State Benefit ceases and to activate their Occupational Supplementary Pension.

The Department of Education will stop the payment of any Occupational Supplementary Pension for the duration of a retired teacher’s substitute work or any other work.

Jobseekers Benefit will stop if a member does any work which involves a PRSI contribution.

Upon retirement at age 65 the member can apply for the Age 65 Benefit online through a MyGovId account online or by completing an application form available from your local Intreo Centre or Branch Office or they can seek to claim an Occupational Supplementary Pension  (OSP) from the Department of Education.

The value of the Age 65 benefit may be at a higher rate than the members OSP.

Members can find out more about eligibility for this benefit here gov.ie – Benefit Payment for 65 Year Olds (www.gov.ie).

If a member retires at age 65 and has no entitlement to an Age 65 Benefit, the member can then seek to claim any Occupational Supplementary Pension they are entitled to from the Department of Education.

I eligible, the Department of Education will then pay an Occupational Supplementary Pension which ensures that the member receives their full pension entitlement until the state retirement age when the State Pension Contributory can be claimed, currently from age 66.

The onus is on the retired teacher to inform the Department of Education when any State Benefit ceases and to activate their Occupational Supplementary Pension.

You should apply for the State Pension contributory three months before you turn 66.

If you worked and paid social insurance contributions abroad and in Ireland, you should apply six months before you turn 66.

You can find details here.

If you have no entitlement to a State Contributory Pension, or the amount you are entitled to is less than your Occupational Supplementary Pension which you received prior to age 66, then you can contact the Department of Education Pensions section to claim any balance of Occupational Supplementary Pension that you may be entitled to.