Voluntary social insurance contributions

Introduction

Paying social insurance can help you to qualify for social insurance payments, such as, the State Pension (Contributory). If you are an employee, Pay Related Social Insurance (PRSI) deductions are made from your earnings each week.

If you are no longer an employee or if you are self-employed and you are no longer making PRSI contributions, you can make voluntary contributions.

Voluntary contributions can help maintain your social insurance record and help you to qualify for social insurance payments in the future.

If you are taking time off work to care for children under 12 years of age, or a disabled child or adult, the Homemaker’s Scheme may be a better option than making voluntary contributions.

Rules

To be eligible to make voluntary contributions you must:

• Have at least 260 weeks PRSI paid under compulsory insurance in either employment or self-employment
• You must apply to make your voluntary contribution within 12 months after the end of the last completed tax year (contribution year) during which you last paid compulsory insurance or you were last awarded a credited contribution
• Agree to pay voluntary contributions from the start of the contribution week that follows the week in which you leave compulsory insurance

and

• You must pay the full contribution for the year no later than 5 months after the end of the year in which the payment is due

You cannot use contributions paid in Class J to satisfy these conditions. However, you may pay PRSI at Class J and voluntary contributions at the same time.

You stop paying voluntary contribution either when you reach 66 years of age or start paying PRSI again.

If you get a social welfare State Pension (Transition) at 65 years of age you do not need to pay further voluntary contributions.

Rates

There are three rates of voluntary contributions.  The rate of voluntary contribution you pay is the same as the last PRSI contribution paid or credited by you. Read here for more information about paying social insurance.

If you paid PRSI at Class A, E or H you pay a high rate contribution of 6.6% of your reckonable income in the previous tax year, subject to a minimum payment of €317 and maximum payment of €3,075.60.  The social insurance payments you may be entitled to by making voluntary contributions at this rate are:

• State Pension (Transition)
• State Pension (Contributory)
• Widow’s/Widower’s (Contributory) Pension
• Guardian’s Payment (Contributory)
• Bereavement Grant

If you paid PRSI at Class B, C or D you pay a low rate contribution of 2.6% of your reckonable income in the previous tax year, subject to a minimum payment of €126 and maximum payment of €1,211.60. The social insurance payments you may be entitled to by making voluntary contributions at this rate are:

• Widow’s/Widower’s (Contributory) Pension
• Guardian’s Payment (Contributory)
• Bereavement Grant

If you have paid PRSI at Class S you pay a special flat rate €253. The social insurance payments you may be entitled to by making voluntary contributions at this rate are:

• State Pension (Contributory)
• Widow’s/Widower’s (Contributory) Pension
• Guardian’s Payment (Contributory)
• Bereavement Grant

Voluntary contributions can be paid by cheque, Banker’s Draft or Standing Order. Your contribution can be paid as a lump sum before the end of the contribution year or by quarterly or half-yearly installments during the contribution year.

How to apply

To become a voluntary contributor you must download and complete application form VC 1 (pdf).

You can also get this form from your local social welfare office.

Where to apply