Changes to PRSI Entitlements for Self Employed Contractors

If you are a self-employed Director paying Class S PRSI, there are some changes to social welfare benefits that are coming your way.

In 2018, the Government announced its intention to give self-employed people increased benefits in line employees paying Class A PRSI contributions.

Currently a Class S Director pays a flat 4% PRSI on taxable income with the Limited Company incurring no additional employer PRSI cost.

Plans to bring forward increased social welfare benefits for self-employed now means that from November 2019, Class S Directors will be entitled to Jobseekers Benefit.

This is an automatic entitlement to 9 months of Jobseekers benefit providing adequate PRSI contributions are paid.

PRSI entitlements to the self-employed from November 2019

Jobseekers Benefit

Invalidity Pension (Long term illness)

Widow/Widowers (Contributory) Pension

Guardian Payment (Contributory)

State Pension (Contributory)

Maternity Benefit

Adoptive Benefit

Treatment Benefit for Dental ,Optical and Aural Services

Benefits not included under Class S PRSI

Occupational Injuries Benefit

Carers Benefit

Illness Benefit

Health and Safety Benefit

Review your Umbrella Company Structure

With the introduction of social welfare for self-employed, Independent Professional Contractors can speak with Icon Accounting for helpful tips on switching from a PAYE Umbrella Company to a Director Umbrella Company | Personal Limited Company to maximize contract income and retain access to social welfare benefits.

Email info@iconaccounting.ie or call the Icon Accounting Advisory Team on 01 8077106