For Written Answer on : 08/11/2023
Question Number(s): 75 Question Reference(s): 48909/23
Department: Social Protection
Asked by: David Stanton T.D.
To ask the Minister for Social Protection if she has considered increasing the current limit of €5,000 of unearned income over which a person is deemed to be a “chargeable person” and is liable to pay the PRSI charge at 4% on all their unearned income; the date when the current limit was set; and if she will make a statement on the matter.
PRSI class S applies to self-employed people including certain company directors, members of a local authority and certain persons’ unearned income such as investments and rents. The current minimum threshold for class S is €5,000 per year. Once income is €5,000 or more in a contribution year, such contributors are liable to pay social insurance contributions at the class S rate of 4%, subject to a minimum annual payment of €500.
The Report of the Commission on Pensions, published in October 2022, examined increasing entry thresholds, in particular for PRSI class A contributors. It found increasing such thresholds would reduce social insurance cover for those persons with very low incomes and so this was not recommended as an option.
Therefore, there are no plans, at this stage, to increase the current minimum threshold of €5,000 for class S contributors, including those who are liable due to unearned income.
I trust this clarifies the matter for the Deputy.