Benefit and contribution years for social welfare purposes

Introduction

To qualify for most social insurance payments in Ireland, a person must satisfy two conditions, first have a certain number of PRSI contributions paid since they started work and secondly, they must have a certain number of PRSI contributions paid or credited in a specific period, that is, in the relevant or governing contribution year. The number of contributions needed varies from benefit to benefit.

The Relevant Tax Year or Governing Contribution Year is 2 years before the Benefit Year. So, for claims in 2019, the Relevant Contribution Year is 2017.

One exception to this is Invalidity Pension, the relevant tax year for Invalidity Pension is the year before the benefit year. So, for claims in 2019, the relevant tax year is 2018.

The Benefit Year

The Benefit Year is not the same as the calendar year which begins on 1 January. The Benefit Year is the 12 months beginning on the first Monday of the calendar year. In 2019, the first Monday in January fell on 7 January, therefore, claims made on 1 January would be based on an earlier Contribution Year. In some cases, this could make a difference to the person claiming.

For example, a claim for Jobseeker's Benefit on 1 January 2019 would be based on PRSI contributions in 2016, whereas a claim for Jobseeker's Benefit on 7 January 2019 would be based on PRSI contributions in 2017.

Part-time workers

If you are a part-time worker, you may not be making the maximum amount of PRSI contributions each year. See Part-time work and social insurance (PRSI) for more information.

Page edited: 11 March 2019