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.
Changes to PRSI requirements for voluntary contributors
From 2015 you will need 520 PRSI contributions to be eligible to make voluntary contributions. There is no change until 6 April 2013 (the requirement remains 260 contributions). From 6 April 2013 the number of contributions needed will change:
- People becoming voluntary contributors after 6 April 2013 but before 6 April 2014 will need 364 PRSI contributions
- People becoming voluntary contributors after 6 April 2014 but before 6 April 2015 will need 468 PRSI contributions
- People becoming voluntary contributors from 6 April 2015 will need 520 PRSI contributions
Rules
To be eligible to make voluntary contributions you must:
- Have at least 364 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.
The contribution year is the same as the income tax year so it runs from January to December.
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 contributions either when you reach 66 years of age or start paying PRSI again.
If you get a 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 linked to the last PRSI contribution paid or credited by you. More information is available 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 €500 (from 2013, previously €317). 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 or Surviving Civil Partner'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 €250 (from 2013, previously €126). The social insurance payments you may be entitled to by making voluntary contributions at this rate are:
- Widow’s, Widower’s or Surviving Civil Partner's (Contributory) Pension
- Guardian’s Payment (Contributory)
- Bereavement Grant
If you have paid PRSI at Class S you pay a special flat rate of €500 (from 2013, previously €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 or Surviving Civil Partner'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. You must pay the full contribution for a year no later than 5 months after the end of the year in which the payment is due.
You can read more about voluntary contributions on the Department of Social Protection's website.
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 social welfare local office.
Where to apply
Voluntary Contributions Section
Department of Social Protection
Cork Road
Waterford
Ireland
Tel:(051) 356 000
Locall:1890 690 690
Fax:(051) 877 838
Homepage: http://www.welfare.ie/
Email: volcons@welfare.ie
Language
Related Documents
- Social insurance in Ireland
Social insurance contributions entitle you to a range of benefits that are administered by the Department of Social Protection. - Standard Bereavement Grant
Outlines the rules, rates and eligibility requirements for the Standard Bereavement Grant. - Social insurance classes
The social welfare benefits you can get is determined by the PRSI Class you are in. This document helps you find out your class of social insurance and the weekly amount of social insurance you must pay.
Contact Us
If you have a question relating to this topic you can contact the Citizens Information Phone Service on 0761 07 4000 (Monday to Friday, 9am to 8pm) or you can visit your local Citizens Information Centre.